Dairy brand Nandini increased the price of ghee by Rs 90.
Even the little relief that the general public got during the festival season, which is facing the brunt of inflation, is now becoming costly. Not even a month and a half has passed since the government reduced the prices of kitchen essentials by cutting GST rates, but companies have now started snatching away that relief. The most recent blow has come from the world of dairy products.
Karnataka’s largest and most trusted dairy brand ‘Nandini Ghee’ has drastically increased the prices of its ghee. The matter of concern is that the company has increased the price by three times more than the reduction in GST. This decision has disappointed millions of consumers who were happy with the relief they got during the festive season. The company has cited its increasing costs as the reason behind this price increase.
From ‘relieved’ to ‘hurt’ – Rs 30 decreased, Rs 90 increased
With the aim of providing relief to the common man, the GST Council had implemented new, reduced rates of GST from September 22, 2025. This had an impact on Nandini Ghee also. Just before the GST cut was implemented, the price of Nandini Ghee was Rs 640 per litre. When the new rates came into effect, consumers got a direct benefit of Rs 30 and the price came down to Rs 610 per litre. This was a big relief in the festive season.
But this happiness did not last long. Now the company has announced a huge increase in prices by Rs 90 per liter in one stroke. This means that the ghee consumers were getting for Rs 610 till yesterday, will now have to pay Rs 700 for the same one liter ghee packet. If we do the calculations, there was a saving of Rs 30 due to GST, but now an additional burden of Rs 90 has been put on the pocket, which is exactly three times that saving.
Why did the company take such a big step?
This big decision has been taken by Karnataka Milk Federation (KMF), which operates the Nandini brand. KMF officials have tried to justify this rapid growth.
According to officials, this decision had to be taken due to rising costs in the international market. He says that the demand for ghee is increasing globally, due to which the prices are skyrocketing. The federation claims that this increase was necessary to keep pace with the trends of the global market and maintain its economic viability. The company also said that despite the price increase, Nandini Ghee rates are still among the lowest in the market.
What is the condition of other big brands in the market?
When a big company increases prices, it becomes important to see what other players in the market are doing.
- Amul: Amul’s ghee also became Rs 610 per liter after GST reduction, whereas earlier it was around Rs 650.
- Saras: The price of Saras ghee had increased by Rs 30 in October itself, after which it is being sold at Rs 581 per liter.
- Patanjali: Patanjali’s normal ghee is available in the retail market between Rs 650 to Rs 700 per liter.
- Mother Dairy: Mother Dairy’s ghee is being sold at Rs 641 per liter.