Image Source : Benefit News
In a decisive move to align with the government’s latest GST reforms, India’s largest dairy cooperative, Amul, has announced price reductions across more than 700 of its products, effective September 22, 2025. The Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the Amul brand, confirmed that the cuts are aimed at passing on the full benefit of the revised GST rates directly to consumers.
The announcement comes just days after the GST Council approved a rate rationalisation that lowered the tax burden on several essential food and dairy items. Amul’s swift response has been widely welcomed by retailers and consumers alike, especially ahead of the festive season when demand for dairy products typically surges.
Key Highlights From Amul’s Price Revision
• Over 700 Amul products to see price cuts starting September 22
• Price reductions range from 3 to 12 percent depending on category and packaging
• GST rate on processed dairy items revised from 18 percent to 5 percent
• Categories impacted include milk, butter, cheese, paneer, ice cream, and flavored beverages
• Amul confirms full compliance with government directive to pass on GST benefits
Product Categories And Price Impact
Amul’s revised pricing spans a wide array of consumer staples and premium offerings. The cooperative has shared indicative reductions across key categories:
• Packaged milk: 3 to 5 percent drop across variants like Amul Gold, Amul Taaza, and Amul Slim n Trim
• Butter and ghee: 6 to 8 percent reduction on 100g, 500g, and 1kg packs
• Cheese and paneer: 5 to 7 percent cut on processed cheese cubes, slices, and paneer blocks
• Ice creams and frozen desserts: 10 to 12 percent markdown on popular SKUs including Amul Kool Koko, Chocobars, and family packs
• Flavored milk and beverages: 5 to 8 percent drop on Amul Kool, Masti Buttermilk, and Lassi
Retailers have been instructed to update shelf prices and promotional materials to reflect the new rates. Amul has also activated its distribution network to ensure smooth rollout across urban and rural markets.
Consumer Sentiment And Market Response
The price cuts have been met with enthusiasm by consumers, particularly in Tier II and III cities where dairy inflation has been a concern. With the festive season approaching, households are expected to increase purchases of ghee, paneer, and sweets—making the timing of Amul’s announcement especially impactful.
Retailers report early signs of increased footfall and bulk orders from sweet shops, caterers, and institutional buyers. The cooperative’s decision is also expected to influence other FMCG players to follow suit and revise prices in line with the GST reforms.
Strategic Alignment With GST Reform Goals
The GST Council’s recent rate rationalisation is part of a broader effort to simplify tax structures and reduce the burden on essential commodities. By lowering the GST on processed dairy items, the government aims to:
• Improve affordability of nutrition-rich products
• Encourage formalisation of dairy supply chains
• Boost consumption and support rural dairy farmers
• Enhance transparency in pricing and billing
Amul’s proactive compliance with the reform reflects its role as a responsible market leader and its commitment to cooperative values.
Looking Ahead
Amul has indicated that further price adjustments may be considered if input costs or tax structures change. The cooperative will continue to monitor market dynamics and consumer feedback to ensure fair pricing and product accessibility.
As India’s dairy sector evolves under new policy frameworks, Amul’s move sets a precedent for ethical pricing and consumer-first strategies. With over 700 products now more affordable, the brand reinforces its position not just as a household name, but as a catalyst for inclusive growth.
Sources: Economic Times, Business Standard, Times of India, Amul Press Release.
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