Amul reduces milk prices by ₹1/liter, first cut in years
What's the story
In a relief for consumers, Amul, India's leading dairy brand, has announced a price cut of ₹1 on some of its milk variants. The price cut, effective from today, is applicable on one-liter pouches of Amul Gold, Taza, and Tea Special. This is the first time in years that the company has reduced its milk prices after a series of consistent hikes.
Price adjustment
New prices for Amul milk variants
Following the price cut, the one-liter pouch of Amul Gold now costs ₹65. Amul Taza has been reduced to ₹53 from ₹54, while the price of Amul Tea Special is ₹61 per liter, down from ₹62. This was confirmed by Gujarat Co-operative Milk Marketing Federation Managing Director Jayen Mehta to ANI.
Market strategy
Strategy to boost sales and competition
Notably, the price cut is only applicable on one-liter pouches, a move which Amul hopes will prompt customers to purchase larger quantities rather than the smaller 500ml packs. Although no specific reasons were cited for the decision, industry watchers speculate that it could be a strategic move by Amul to counter growing competition in the dairy sector.
Market dynamics
Price reduction amid rising demand and competition
The announcement of the new prices comes at a time when there is an increasing demand for dairy products and heightened competition from other brands. This move by Amul is seen as an attempt to stay competitive, particularly in light of the ongoing price hikes in recent years. The price cut is expected to provide some relief to consumers while helping Amul maintain its strong market position.