GST rate cut: After Mother Dairy, Amul lowers rates on over 700 products

New Delhi, Sep 20 (IANS) Days after Mother Dairy lowered price, Amul on Saturday announced a slash on prices for over 700 of its products to pass on the benefits of the GST rate rationalisation to consumers.

The announcement made by the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy items under the Amul brand, includes a reduction of retail prices of its Ultra-High Temperature (UHT) milk and milk products, which include milk, ghee, butter, ice cream, bakery and frozen snacks.

The new price will be effective from September 22.

"This revision is across the range of product categories like butter, ghee, UHT milk, ice cream, cheese, paneer, chocolates, bakery range, frozen dairy and potato snacks, condensed milk, peanut spread, malt-based drink, etc,” the GCMMF said in a statement.

Under the revised rates, Amul has cut prices of one litre tetrapack of Amul Taaza Toned UHT Milk by 2.6 per cent and that of Amul Gold Standardised UHT Milk by 3.6 per cent.

Other products like butter (100 gm) will now cost Rs 58 from the earlier Rs 62.

Ghee rates have been slashed by Rs 40 to Rs 610 per litre.

The MRP on Amul processed cheese block (1kg) has been reduced by Rs 30 to Rs 545 per kg.

Similarly, frozen paneer (200 gm) will cost Rs 95 as against Rs 99 now.

“Amul believes the reduction in prices will spur consumption of a wide range of dairy products, particularly ice cream, cheese and butter, as the per capita consumption remains very low in India, creating a large growth opportunity,” the statement said.

GCMMF, which is owned by 36 lakh farmers, said the reduction in prices will boost demand for its dairy products, leading to growth in its turnover.

Earlier, Mother Dairy had also announced price cuts on its products from September 22.

With the new norms, the company’s entire portfolio now falls either under the exempted or the lowest slab of 5 per cent.

Heritage Foods has also reduced consumer prices on its products following GST rate rationalisation.

The MRP of its long shelf-life UHT milk has been reduced by Rs 3 per litre.

--IANS

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