Amul slashes prices of 700 products from Sept 22, pouch milk rates unchanged

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells dairy products under the Amul brand, on Saturday (September 20) announced a price cut on over 700 product packs, including ghee, butter, ice cream, bakery items and frozen snacks.

The move comes as the company decided to pass on the benefits of the GST rate reduction to consumers. The revised prices will take effect from September 22.

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However, the company has clarified that there will be no change in the price of packaged pouch milk. The dairy major said the pouch milk has always attracted zero per cent GST and hence remains unaffected by the recent tax changes. The clarification comes after media reports suggested a possible reduction of Rs 3 to 4 per litre in pouch milk prices.

Price cuts across categories

In a statement, Gujarat Cooperative Milk Marketing Federation (GCMMF) announced a revision in the price list of more than 700 product packs, offering the full benefit of GST reduction to its customers, effective September 22.

"This revision is across the range of product categories like butter, ghee, UHT milk, ice cream, cheese, paneer, chocolates, bakery range, frozen dairy and potato snacks, condensed milk, peanut spread, malt-based drink, etc," GCMMF said.

The MRP of butter (100 gm) has been reduced to Rs 58 from Rs 62. Ghee rates have been cut by Rs 40 to Rs 610 per litre.

The MRP of Amul processed cheese block (1kg) has been cut by Rs 30 to Rs 545 per kg. The new MRP of frozen paneer (200 gm) will be Rs 95 from September 22, as against Rs 99 now.

Amul has already taken the initiative to communicate changes in prices to its trade partners, including distributors, Amul parlours, and retailers across India.

Move to spur consumption

"Amul believes the reduction in prices will spur consumption of a wide range of dairy products, particularly ice cream, cheese and butter, as the per capita consumption remains very low in India, creating a large growth opportunity," the statement said.

GCMMF, which is owned by 36 lakh farmers, said the reduction in prices will boost demand for its dairy products, leading to growth in its turnover.

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The cooperative, which sells dairy products under the ‘Amul’ brand, recorded an 11 per cent rise in revenue to Rs 65,911 crore for the last fiscal year, mainly driven by an increase in volumes across all categories.

The total unduplicated revenue of the Amul brand increased to about Rs 90,000 crore in the last fiscal year from about Rs 80,000 crore in 2023-24.

Earlier, Mother Dairy had also announced price cuts on its products from September 22.

(With agency inputs)