VADODARA: Dairy major Amul has reduced price of its one-litre packets, giving some relief to household budgets amid rising inflation. This is the first such price reduction in one-litre pouches in decades.
The Gujarat Co-operative Milk Marketing Federation (GCMMF), the body formed in 1973 that markets dairy products under the brand name Amul, reduced prices of one-litre pouches of milk by one rupee. The move will benefit consumers, especially in joint families and players in the hotel, restaurants and catering (HoReCa) industry.
The reduction in prices came into effect on Friday morning. The new prices apply all across the country.
This means that consumers will save a rupee per litre if they buy a litre packet of milk, as a litre pack will cost one rupee less than two 500 ml packs for the same variant. Prices of one-litre packets have been reduced in four variants — Amul Gold, Amul Taaza, Amul T-Special and Amul Chai Mazza.
“This is to encourage consumers to buy larger packet of milk,” GCMMF’s managing director Jayen Mehta told TOI, adding that the new pricing will help Amul serve its customers better.
In Gujarat, a litre pack of Amul Gold will cost Rs 65 instead of Rs 66, the cost of two 500ml packs. Similarly, a litre pack of Amul T-Special will cost Rs 61 instead of Rs 62, while Amul Taaza and Amul Chai Maaza will cost Rs 53 instead of Rs 54.
In metros such as Delhi and Mumbai, prices of litre packs differ from the rest of India. In the national capital, the price of an Amul Gold packet has been reduced to Rs 67 from Rs 68 per litre, while Amul Taaza will now Rs 55.
Traditionally, Amul has increased milk prices by one rupee to Rs 2 a litre every year. In earlier decades, Amul used to increase milk prices by Re 1 per litre. In the last decade or so, the dairy major raised effective milk prices by Rs 2 per litre every year.
In June last year, Amul increased the price of all variants, including Amul Gold, Amul Shakti, Amul Taaza, Amul Buffalo and Amul Cow Milk, each by Rs 2 and Rs 3 per litre.
While the price of Amul Gold increased from Rs 64 to Rs 66, that of Amul Taaza increased from Rs 52 to Rs 54. Similarly, the price of Amul Shakti increased from Rs 58 to Rs 60, whereas that of Amul Buffalo Milk increased from Rs 68 to Rs 71. Amul Cow Milk, which was priced at Rs 54, increased to Rs 56 with effect from June 3, 2024.
Although this is the first time in recent history that Amul has slashed prices on one-litre packs, the dairy major in the past has slashed retail prices of bulk pouches.
In 2018, Amul slashed the price of a 5-litre pack of full cream milk (Amul Gold) from Rs 260 to Rs 245, making it cheaper by Rs 15, translating into a saving of Rs 3 per litre.
GCMMF registered 8% growth in annual turnover, which touched Rs 59,445 crore in the 2023-24 financial year. The cooperative is expecting double-digit growth this fiscal year.
GCMMF, the world’s largest farmer-owned dairy cooperative, along with its 18 member unions in Gujarat, procures 300 lakh litres of milk every day. In the last fiscal year, it handled an average of 310 lakh litres of milk a day.
