Major Relief for Indian Households

Starting September 22, 2025, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the iconic Amul brand, has announced a massive price reduction across more than 700 product packs. This welcome move comes in response to the government's decision to slash Goods and Services Tax (GST) rates on essential food items as part of the GST 2.0 reforms.

GCMMF has committed to passing on the full benefit of the GST reduction directly to consumers, offering immediate relief to millions of Indian families who depend on Amul products for their daily needs.

GST Rate Changes That Triggered Price Cuts

The 56th GST Council meeting held on September 3, 2025, brought transformative changes to dairy product taxation:

New GST Rates on Dairy Products (Effective September 22, 2025)

Zero GST (0%):

• Ultra-High Temperature (UHT) milk (reduced from 5%)

• Pre-packaged and labelled paneer/chhena (reduced from 5%)

5% GST:

• Butter (reduced from 12%)

• Ghee and butter oil (reduced from 12%)

• Cheese (reduced from 12%)

• Condensed milk (reduced from 12%)

• Ice cream (reduced from 12-18%)

• Dairy spreads (reduced from 12%)

No Change:

• Fresh/pouch milk (already 0% GST)

Amul Products: Complete Before & After Price List

Dairy Essentials - Price Comparison

Amul Butter:

• 100 gm: ₹62 → ₹58 (Save ₹4)

• 500 gm: ₹310 → ₹290 (Save ₹20)

Amul Ghee:

• 1 litre: ₹650 → ₹610 (Save ₹40)

• 500 ml: ₹325 → ₹305 (Save ₹20)

Amul Cheese:

• Processed Cheese Block (1 kg): ₹575 → ₹545 (Save ₹30)

• Cheese Slices (200 gm): ₹115 → ₹110 (Save ₹5)

Amul Paneer:

• Frozen Paneer (200 gm): ₹99 → ₹95 (Save ₹4)

• Fresh Paneer (200 gm): ₹85 → ₹82 (Save ₹3)

UHT Milk & Beverages

Amul UHT Milk:

• Full Cream (1 litre): ₹69 → ₹65-66 (Save ₹3-4)

• Toned (1 litre): ₹59 → ₹56 (Save ₹3)

Amul Beverages:

• Kool Flavored Milk (200 ml): ₹20 → ₹19 (Save ₹1)

• Masti Buttermilk (200 ml): ₹15 → ₹14 (Save ₹1)

Ice Cream & Frozen Products

Amul Ice Cream:

• 1 litre tub: ₹280-320 → ₹260-300 (Save ₹20-30)

• Kool Kup (65 ml): ₹25 → ₹23 (Save ₹2)

• Frostik (85 ml): ₹30 → ₹28 (Save ₹2)

• Frozen Snacks: 5-10% reduction across range

Other Products - Price Reductions

Chocolates: ₹2-5 savings per pack Bakery Items: 3-8% reduction across range Malt-based Drinks: ₹10-15 savings per kg Peanut Spread: ₹8-12 savings per jar Condensed Milk: ₹15-20 savings per tin Potato Snacks: ₹3-5 savings per pack

Note: Prices may vary slightly by region and retailer. The above represents average market prices.

Products Not Affected by Price Change

Fresh Pouch Milk: Fresh/pasteurized milk in pouches was already exempt from GST and remains at current prices. This includes:

• Amul Gold (Full Cream Milk)

• Amul Taaza (Toned Milk)

• Amul Shakti (Standardized Milk)

• Amul Slim n Trim (Double Toned Milk)

Monthly Savings Calculation for Average Household

Typical Family Consumption & Savings

For a family of 4 consuming Amul products regularly:

Monthly Purchases & Savings:

1. Butter (8 packs of 100gm)

• Old Cost: ₹496
• New Cost: ₹464
• Monthly Savings: ₹32

1. Ghee (2 litres)

• Old Cost: ₹1,300
• New Cost: ₹1,220
• Monthly Savings: ₹80

1. Cheese (1 kg)

• Old Cost: ₹575
• New Cost: ₹545
• Monthly Savings: ₹30

1. Paneer (1 kg - 5 packs)

• Old Cost: ₹495
• New Cost: ₹475
• Monthly Savings: ₹20

1. Ice Cream (4 litres)

• Old Cost: ₹1,200
• New Cost: ₹1,120
• Monthly Savings: ₹80

1. UHT Milk (4 litres)

• Old Cost: ₹276
• New Cost: ₹260
• Monthly Savings: ₹16

Total Monthly Savings: ₹258 Annual Savings: ₹3,096

Why This Matters: Impact Analysis

Benefits for Consumers

1. Immediate Household Relief: Families save ₹250-300 monthly on dairy essentials

1. Festive Season Timing: Reductions coincide with Navratri and Diwali celebrations

1. Increased Affordability: Premium dairy products now accessible to more families

1. Inflation Control: Helps offset rising costs in other sectors

Benefits for Farmers

• GCMMF is owned by 36 lakh (3.6 million) farmers

• Lower prices expected to boost consumption, increasing demand for raw milk

• Higher sales volumes translate to better farmer incomes

• Supports rural economy and dairy sector growth

Business Impact

• Amul recorded 11% revenue growth to ₹65,911 crore in FY 2024

• Total Amul brand revenue reached ₹90,000 crore

• Price cuts aim to spur consumption in low per capita categories

• Creates significant growth opportunity in ice cream, cheese, and butter segments

Mother Dairy Also Announces Price Cuts

Following Amul's lead, Mother Dairy has also announced price reductions effective September 22, 2025:

• UHT Milk: ₹2 per litre reduction

• Paneer, Butter, Cheese: Similar GST benefit pass-through

• Ice Cream: Price cuts across range

Both dairy giants' decisions align with the government's effort to make essential food products more affordable for consumers across India.

Statement from Amul Leadership

Jayen Mehta, Managing Director of GCMMF, expressed gratitude to the government:

"On behalf of the 36 lakh farmer families affiliated with the Amul Dairy Cooperative Movement in Gujarat and more than 10 crore families associated with the dairy industry of the country, we are thankful to PM Modi and FM Nirmala Sitharaman for this landmark decision."

He added:

"More than 30 different dairy and food product categories that we are associated with have seen a significant decline in GST rates. This means more money in the hands of consumers and an assured future for millions of milk producers of the country."

Product Categories Covered in Price Revision

Complete List of Affected Categories

✓ Dairy Essentials: Butter, Ghee, Paneer, Cheese ✓ Milk Products: UHT Milk, Flavored Milk, Buttermilk ✓ Frozen Range: Ice Cream, Frozen Paneer, Dairy Snacks ✓ Spreads: Peanut Butter, Chocolate Spreads ✓ Bakery: Bread, Cakes, Pastries ✓ Snacks: Potato-based snacks, Frozen items ✓ Beverages: Malt-based drinks, Milk drinks ✓ Sweets: Chocolates, Condensed Milk

How to Verify the New Prices

Tips for Consumers

1. Check MRP Labels: New prices are printed on product packaging

1. Ask Retailers: Confirm GST-reduced rates at Amul parlours and stores

1. Compare Invoices: Ensure bills reflect September 22, 2025 or later date

1. Regional Variations: Slight price differences may exist across states

1. Authenticity: Buy from authorized dealers for genuine products

Where to Buy

• Amul Parlours and Preferred Outlets

• Authorized retail stores and supermarkets

• Online platforms (Amazon, BigBasket, etc.)

• Local milk vendors (for pouch milk)

Industry Expert Views

Positive Economic Impact

Manish Bandlish, Managing Director of Mother Dairy, called the reform "progressive":

"We commend the Union Government's decision to reduce GST rates on a wider range of dairy products. This progressive step will significantly enhance affordability and accessibility of value-added dairy products for consumers across the country."

Market Analysts' Perspective

• Expected to boost dairy sector demand by 10-15%

• May lead to price competition benefiting consumers

• Supports government's inflation control measures

• Encourages product innovation at competitive prices

What This Means for India's Dairy Sector

Sector Overview

• Market Size: ₹19 lakh crore industry

• Employment: Over 8 crore rural dairy farmers

• Growth Potential: India has low per capita dairy consumption compared to global standards

Long-term Implications

1. Increased Consumption: Lower prices drive higher demand

1. Sector Formalization: Reduces adulteration and improves quality

1. Farmer Benefits: Higher milk procurement at better prices

1. Export Competitiveness: Makes Indian dairy products more competitive globally

GST 2.0: The Bigger Picture

This price reduction is part of the government's Next-Generation GST Reforms, which include:

• Simplified tax structure (5%, 18%, 40% slabs)

• Zero GST on health and life insurance

• Reduced rates on daily essentials

• Lower taxes on electronics and automobiles

• Focus on common man's welfare

Frequently Asked Questions (FAQs)

Q: When did Amul reduce prices? A: September 22, 2025, following the GST rate revision

Q: How much can I save on Amul products? A: Savings range from ₹4 on butter to ₹40 on ghee per unit. Average families can save ₹250-300 monthly

Q: Are fresh milk prices also reduced? A: No, fresh pouch milk was already GST-exempt and prices remain unchanged

Q: Which Amul products are cheaper now? A: Over 700 products including butter, ghee, cheese, paneer, UHT milk, ice cream, chocolates, and bakery items

Q: Will other dairy brands follow Amul? A: Yes, Mother Dairy and other brands have also announced similar price cuts

Q: How do I verify the new prices? A: Check the MRP on product labels or ask at authorized Amul outlets

Consumer Action Steps

Make the Most of These Savings

1. Stock Up on Essentials: Buy long-shelf-life products like ghee and butter

1. Try New Products: Explore Amul's range at reduced prices

1. Plan Festive Shopping: Take advantage of lower rates for Diwali purchases

1. Share Information: Inform friends and family about price reductions

1. Support Quality: Choose authentic brands over cheaper alternatives

Conclusion: A Win-Win for All

Amul's decision to slash prices on over 700 products represents a significant victory for Indian consumers. By passing on the full benefit of GST reductions, GCMMF has demonstrated its commitment to both consumer welfare and farmer prosperity.

The timing couldn't be better—just ahead of the festive season, families can now enjoy quality dairy products at more affordable prices. This move is expected to boost dairy consumption, support millions of farmers, and contribute to India's economic growth.

As PM Modi promised, the GST 2.0 reforms are indeed bringing a "double Diwali" to Indian households, with Amul leading the charge in making essential food items accessible to all.