Amul lowers milk costs in India by Re 1 per litre


Amul, one of India’s most well-known dairy brands, has made a noteworthy move by reducing the price of its 1-litre milk packs of Gold, Taaza, and Tea Special by Re 1. This adjustment will be applicable specifically to the 1-litre packs of these three variants of milk, allowing consumers to benefit from a small yet significant price cut. The decision was officially communicated by Jayen Mehta, the Managing Director of the Gujarat Co-operative Milk Marketing Federation (GCMMF), which oversees Amul’s operations and products across the country.

As part of the reduction, the price of a 1-litre pouch of Amul Gold milk has decreased from Rs 66 to Rs 65, making it slightly more affordable for consumers. Similarly, Amul Tea Special milk will now be priced at Rs 61 per litre, as opposed to its previous cost of Rs 62. In the case of Amul Taaza milk, the new price will be Rs 53 per litre, down from Rs 54. Although these price cuts may seem modest, they are expected to have a positive impact, particularly for households that consume significant quantities of milk.

This price revision comes shortly after Amul’s decision in June 2024 to hike the prices of milk by Rs 2 per litre. The price increase in June sparked similar hikes from other milk suppliers, such as Mother Dairy, which also raised its milk prices by Rs 2 per litre in response to Amul's price hike. However, the new reduction in prices is a sign of Amul’s willingness to adjust and provide some relief to its customers.

Jayen Mehta, the Managing Director of GCMMF, explained that the rationale behind this price cut is purely to offer financial relief to consumers, particularly in a market where prices of essential goods are constantly fluctuating. The goal, according to Mehta, is to stimulate milk consumption, which has seen some decline in certain regions due to increased costs. By lowering the prices of these popular milk variants, Amul hopes to make its products more accessible to a wider segment of the population and to encourage more people to include milk in their daily diet.

Despite this reduction, the move to lower prices does not come as a response to any significant drop in the cost of milk production or other external factors, Mehta clarified. The decision is, therefore, seen as a gesture to reassure consumers that Amul is committed to keeping milk affordable while simultaneously supporting the dairy industry and consumer needs. With this step, Amul further strengthens its market position as a brand that listens to consumer demands and adapts to market conditions without compromising on quality.


 

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