Image Source : Moneycontrol
Heritage Foods Ltd has announced a sweeping price reduction across its dairy portfolio, effective September 22, following the GST Council’s recent rationalization of tax rates on processed dairy products. The move comes just ahead of India’s festive season, a period marked by heightened demand for milk-based items, and is aimed at making high-quality dairy more accessible to consumers across the country.
The company confirmed that the price cuts will apply to ultra-pasteurized milk, ghee, butter, cheese, paneer, and select ice cream packs. Fresh milk prices remain unchanged, as the category is exempt from GST. Heritage Foods emphasized that the entire benefit of the GST rate revision is being passed on to consumers, reinforcing its commitment to affordability and transparency.
Key Highlights From The Announcement
- UHT milk price reduced by Rs 3 per litre
- Ghee and butter prices cut by Rs 50 per litre and per kilogram respectively
- Cheese prices lowered by Rs 50 per kilogram
- Paneer prices reduced by Rs 25 per kilogram
- Ice cream packs now cheaper by Rs 35 for 950 ml and Rs 20 for 700 ml sizes
- Fresh milk prices remain unchanged due to GST exemption
Rationale Behind The Price Cuts
The GST Council’s decision to lower tax rates on processed dairy products has provided companies like Heritage Foods with the opportunity to recalibrate pricing. By passing on the full benefit to consumers, the company aims to support household budgets during the festive season, when dairy consumption typically spikes due to traditional sweets, desserts, and celebratory meals.
Executive Director Brahmani Nara stated that the revised pricing reflects the company’s consumer-first philosophy and its commitment to ensuring that purity and quality remain accessible. The move is expected to enhance brand loyalty and expand market reach, especially in Tier 2 and Tier 3 cities.
Impact On Consumers And Retailers
Retailers across India are preparing for revised price tags and updated inventory ahead of the September 22 rollout. The reduction in prices is expected to boost sales volumes and encourage bulk purchases, particularly in urban centers where packaged dairy products are a staple.
For consumers, the timing couldn’t be better. With Navratri, Dussehra, and Diwali approaching, families can now enjoy premium dairy products at lower costs. The price cuts are likely to influence buying behavior, with increased demand anticipated for ghee, paneer, and ice cream—items central to festive cooking and gifting.
Market Position And Competitive Dynamics
Heritage Foods, headquartered in Andhra Pradesh, is one of India’s leading dairy brands with a strong presence in southern and western markets. The company’s portfolio includes milk, curd, buttermilk, flavored milk, and value-added products like cheese and ice cream.
This pricing move positions Heritage Foods competitively against other national and regional players. With Amul, Mother Dairy, and Hatsun Agro also expected to respond to GST changes, the dairy sector may witness a wave of price recalibrations in the coming weeks.
Operational Readiness And Distribution Strategy
Heritage Foods has confirmed that its supply chain is fully prepared to implement the new pricing structure. Updated labels and revised MRPs are being rolled out across its distribution network, which includes over 15,000 retail outlets and multiple cold chain facilities.
The company’s digital platforms and e-commerce partners will also reflect the revised prices starting September 22, ensuring consistency across offline and online channels.
Looking Ahead
The GST-driven price reduction is more than a tactical adjustment—it signals a broader shift in how dairy companies are aligning with consumer expectations and policy reforms. Heritage Foods’ proactive approach may set a precedent for other FMCG players navigating tax changes and seasonal demand.
As the festive season unfolds, the company is expected to monitor sales trends and consumer feedback closely, with potential promotional campaigns and bundled offers on the horizon.
Sources: Economic Times, The Hindu BusinessLine, FoodTechBiz.
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