Amul Reduces Milk Prices by ₹1 Per Litre

Dairy giant Amul has announced a price reduction for its one-litre milk packets, offering some respite to households grappling with inflation. This marks the first price cut in one-litre packs in decades, aiming to benefit both consumers and the hospitality industry.

Price Reduction Details: Variants and Impact

The Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets dairy products under the Amul brand, has reduced the prices of its one-litre milk packets by ₹1. This applies to four key variants:

• Amul Gold: Reduced to ₹65 from ₹66 (in Gujarat)

• Amul Taaza: Reduced to ₹53 from ₹54

• Amul T-Special: Reduced to ₹61 from ₹62

• Amul Chai Mazza: Reduced to ₹53 from ₹54

In metros like Delhi and Mumbai, prices have also been lowered. For instance, in Delhi:

• Amul Gold now costs ₹67, down from ₹68.

• Amul Taaza is priced at ₹55, reduced from ₹56.

Objective Behind the Price Cut

According to Jayen Mehta, Managing Director of GCMMF, the initiative aims to encourage consumers to buy larger packets of milk. This strategy not only ensures better pricing for customers but also aligns with Amul’s goal of serving its diverse consumer base, including large families and the HoReCa (Hotel, Restaurants, Catering) sector.

Historical Pricing Trends of Amul

Traditionally, Amul has been known for incremental price hikes of ₹1 to ₹2 per litre annually. For instance:

• June 2024: Amul increased prices of all variants by ₹2-₹3 per litre.

• 2018: Amul reduced the price of its 5-litre Amul Gold pack by ₹15, saving consumers ₹3 per litre.

However, this is the first significant price reduction for one-litre packets in recent history, signifying a consumer-focused shift in strategy.

Amul’s Performance and Growth

GCMMF, the world’s largest farmer-owned dairy cooperative, achieved 8% growth in its annual turnover, reaching ₹59,445 crore in the 2023-24 financial year. The cooperative, which procures an impressive 300 lakh litres of milk daily from its 18 member unions in Gujarat, is optimistic about achieving double-digit growth in the current fiscal year.

Focus on Consumer-Centric Initiatives

The price cut reflects Amul’s commitment to balancing consumer affordability with its growth objectives. By reducing prices, particularly in larger packs, Amul aims to strengthen its bond with consumers and expand its market presence in both urban and rural areas.

Conclusion: A Consumer-Centric Step Forward

Amul's decision to reduce the prices of its one-litre milk packets is a significant step towards supporting consumers amid rising inflation. This move not only offers financial relief to households but also aligns with Amul’s long-term vision of making dairy products more affordable and accessible. By focusing on larger packs and introducing consumer-friendly pricing, Amul reinforces its commitment to enhancing value for customers while sustaining its leadership in the dairy sector. Coupled with its strong growth performance and innovative strategies, this price reduction underscores Amul's dedication to balancing consumer needs with market dynamics.