In a major relief for consumers across India, dairy giant Amul has announced sweeping price reductions on over 700 products, including staples like butter, ghee, ice cream, paneer, and cheese, following the GST Council’s decision to lower tax rates on essential goods. The revised prices will come into effect from September 22, 2025, aligning with the nationwide rollout of the new GST 2.0 framework.
What’s Getting Cheaper
Amul confirmed that the price cuts will apply to a wide range of its dairy and food products, many of which are household essentials:
Butter: Reduced by ₹8–₹12 per pack, depending on size
Ghee: Price drop of ₹15–₹25 per liter
Ice Cream: Popular variants like Amul Vanilla, Choco Chips, and Rajbhog now cheaper by ₹5–₹10
Paneer & Cheese: Discounts ranging from ₹10–₹20 per pack
UHT Milk & Condensed Milk: Now tax-free or under 5% GST, leading to lower shelf prices
The company stated that the price reductions are a direct result of the GST Council’s decision to move many dairy and processed food items from the 12–18% tax bracket to the 5% slab, or in some cases, make them zero-rated.
Amul’s Statement
Jayen Mehta, Managing Director of Amul, said, “We welcome the GST reforms and are passing on the full benefit to consumers. This move will make nutritious dairy products more affordable for millions of Indian families.”
Government’s Push for Affordability
The GST overhaul is part of the government’s broader initiative to reduce the cost of living and boost consumption. Finance Minister Nirmala Sitharaman emphasized that the reforms are designed to benefit farmers, women, and middle-class households, with dairy being a key focus area.
We Impact on Market and Consumers
Retailers have begun updating price tags, and early reports suggest a surge in demand for Amul products ahead of the festive season. Analysts predict that the move could lead to increased sales volumes and improved consumer sentiment.
With Amul leading the charge, other FMCG brands are expected to follow suit, making everyday essentials more accessible to the average Indian household.