Amul Slashes Prices for One-Litre Milk

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In a move that has caught the attention of households across India, the Gujarat Cooperative Milk Marketing Federation (GCMMF), the parent body of the renowned Amul brand, has announced a significant price cut. Effective immediately, one-litre packs of Amul milk are now cheaper by Re 1 nationwide. The decision reflects a strategic effort by GCMMF to promote the purchase of larger milk packs while rewarding consumer loyalty with cost savings.

Amul Milk Price Drops

According to GCMMF Managing Director Jayen Mehta, the price reduction applies uniformly across India. “We have reduced the prices of one-litre packs by Re 1 per litre across India. This is to encourage consumers to buy larger packs of milk and get an incentive for the same,” Mehta stated in a recent press briefing. For instance, in Delhi, the cost of Amul Gold milk has been revised from Rs 68 to Rs 67 per litre, while Amul Taaza, a popular choice for low-fat milk, will now retail at Rs 55 instead of Rs 56 per litre. These revised prices are expected to provide households with modest but meaningful savings over time, particularly in urban areas where milk consumption is high.

The price reduction serves a dual purpose. First, it aims to boost sales of one-litre milk packs by making them more attractive compared to smaller pack sizes. Second, it demonstrates GCMMF’s commitment to its customer base, offering them value amidst rising living costs. Industry experts view this move as a smart strategy to capture a larger share of the dairy market. “By reducing the price of larger packs, GCMMF not only encourages bulk purchases but also strengthens its brand loyalty among consumers,” said a market analyst.

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Amul’s Impressive Growth Trajectory

The price cut comes on the heels of an impressive financial performance by GCMMF. The cooperative recorded an 8% increase in turnover for the 2023-24 fiscal year, reaching a staggering Rs 59,445 crore. Such robust growth is attributed to the soaring demand for its diverse range of dairy products, from fresh milk and butter to cheese and ice cream. In addition to its revenue milestones, GCMMF boasts an unparalleled operational scale. The cooperative managed an average milk procurement of 310 lakh litres per day during the last fiscal year, with a total annual processing capacity of approximately 500 lakh litres. This scale cements GCMMF’s position as a key player in the global dairy industry.

What sets GCMMF apart is its farmer-owned cooperative model. Rooted in Gujarat, the federation represents 36 lakh farmers from over 18,600 villages. Its 18 member unions collectively procure around 300 lakh litres of milk daily, ensuring a steady livelihood for its vast network of farmers. This farmer-first approach has not only empowered rural communities but also propelled GCMMF to global recognition. According to the International Farm Comparison Network (IFCN), GCMMF ranks 8th among the world’s top 20 dairy companies in milk processing capacity. This achievement underscores the cooperative’s ability to blend traditional values with modern business practices.

Consumer Impact and Market Outlook

For consumers, the price cut offers a welcome respite in today’s inflationary environment. Even a small reduction of Re 1 per litre can lead to significant savings over time for families that rely on Amul milk for their daily needs. Additionally, the move is likely to influence market dynamics, prompting competitors to reassess their pricing strategies. As GCMMF continues to expand its product portfolio and enhance its distribution network, its ability to sustain double-digit revenue growth appears promising.

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Amul’s decision to slash prices is more than just a marketing tactic—it’s a reflection of its broader mission to serve both its consumers and the farmer community. By making its products more affordable, GCMMF reinforces its position as a trusted household name while staying true to its cooperative ethos. As the dairy industry evolves, Amul remains a shining example of how a farmer-driven model can achieve global success. With this price reduction, the iconic brand reaffirms its commitment to delivering value, quality, and trust—one litre at a time.

Rishi Vakil
Rishi Vakilhttps://sampost.news
Interested in Geopolitics, Finance, and Technology.

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