GST Rate Cut: Amul Slashes Prices of More than 700 Product Packs

Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets products under the Amul brand, has announced a broad set of price reductions across its portfolio. The move, effective September 22, 2025, is designed to transfer the full advantage of recent Goods and Services Tax changes directly to consumers.

Scope of the Price Reductions

As per the PTI, the downward revision spans many categories, including ghee, butter, processed cheese, UHT milk, ice cream, paneer, chocolates, bakery items, frozen dairy and potato snacks, condensed milk, peanut spread and malt-based drinks. Some of the examples of the new retail levels include:

• Butter (100 g): reduced from ₹62 to ₹58
• Ghee: lower by ₹40, now ₹610 per litre
• Amul processed cheese block (1 kg): down by ₹30 to ₹545
• Frozen paneer (200 g): now ₹95, from ₹99

GCMMF has stated that the price changes reflect the full benefit of the GST adjustment and apply across a wide set of SKUs.

Expected Impact on Demand and Farmers

GCMMF expects lower retail prices to stimulate consumption, particularly for items such as ice cream, cheese and butter, where per-capita consumption in India remains modest. Higher volume demand could translate into improved turnover for the federation. The cooperative represents roughly 3.6 million (36 lakh) farmers; GCMMF anticipates that stronger sales will support higher overall revenue while continuing to benefit its member-producers.

Earlier this week, Mother Dairy also announced similar price cuts effective September 22, indicating a sector-wide pass-through of the GST change.

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Conclusion

By cutting retail prices on hundreds of packs, GCMMF aims to pass tax savings to customers and drive greater adoption of dairy products. The federation believes this consumer-friendly step will expand demand and, in turn, strengthen business outcomes for its large farmer base.

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