Amul’s parent company Gujarat Cooperative Milk Marketing Federation (GCMMF) announced on Saturday that it was reducing the price of more than 700 of its product packs. This step has been taken to make the advantage of recent GST reforms directly to the customers. The new prices will be applicable from September 22 and include many items such as ghee, butter, ice cream, bakery products and frozen snacks.
The company said that this change would apply to many categories such as butter, ghee, ice cream, cheese, cheese, chocolate, bakery items, frozen snacks, condensed milk, peanut spreads and malt-based drinks. Amul believes that the price decreased will increase the consumption of ice cream, cheese and butter, and this will become a big development opportunity in view of very low per capita consumption of dairy products in India.
GCMMF, owned by 36 lakh farmers, hopes that the demand and sale of products will increase due to decrease in prices. Earlier, Mother Dairy also announced to reduce the prices of her products, which will be applicable from 22 September. The price has come down by about 40 rupees.
No change in milk prices
The packet was already 0% GST on milk, so GST reforms have not affected it. GCMMF managing director Jayen Mehta said on September 11 that GST is already zero on the latest packet milk, so no cuts have been made in its prices. GCMMF, owned by 36 lakh farmers, said that the decrease in prices will increase the demand for its dairy products and its turnover (total sales) will also increase. This cooperative institution, which sells its products under the Amul brand. Its revenue has increased by 11% to ₹ 65,911 crore in the last financial year.
GST correction
Union Finance Minister Nirmala Sitharaman announced several GST reforms after the 56th GST Council meeting on 3 September. Many items were kept in 0% GST. Many products were reduced from high rates to 5% and 18% slabs.
Also read- Home will have to be decorated on Diwali and affordable, GST rates will change from 22 September