Amul‘s parent, Gujarat Cooperative Milk Marketing Federation (GCMMF), announced revised prices for a range of products in a statement.
“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.
Amul has informed its trade partners, including distributors, Amul parlours, and retailers across India, of the price changes.
“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 noted.
Any change in milk prices?
The prices of pouch and packaged milk will remain unchanged, as they were not subject to GST even before the reforms.
“There is no change proposed in the prices of fresh pouch milk as there is no reduction in GST. It has always been zero per cent GST on pouch milk,” Jayen Mehta, MD of GCMMF, told ANI on September 11.
How will a price cut impact the demand for dairy products?
Owned by 36 lakh farmers, GCMMF said the reduction in prices will increase demand for its dairy products, leading to growth in its turnover.
The cooperative, which markets its products under the ‘Amul’ brand, saw revenue increase by 11 per cent to ₹65,911 crore in the last fiscal year, mainly due to higher sales volumes across all categories.
GST reforms
Union Finance Minister Nirmala Sitharaman announced a set of Goods and Services Tax (GST) reforms on Wednesday, 3 September, following the 56th GST Council meeting. Several items were brought under the nil GST regime, while many goods were shifted to 5% or 18% slabs from higher rates.
