Amul raises butter, ghee prices

Amul has raised the prices of ghee and butter in preparation for the upcoming Diwali festival. The price of a 1-kg carton of ghee has increased from Rs 630 to Rs 680, a rise of Rs 50. Additionally, a 500-gm pack of butter has seen a price increase from Rs 310 to Rs 325, an additional Rs 15 per pack. These price hikes come as Amul faces rising demand and shortages of cow ghee in various markets.

The price increase is attributed to a surge in demand for branded ghee following actions taken against adulterated products in Gujarat and neighboring Rajasthan. The GST reduction on dairy products, which decreased from 12% to 5% in September 2025, has partially offset the price increase. However, the benefit consumers received from this GST reduction has been diminished by the latest price revision.

Consumers are also experiencing difficulties finding some Amul dairy products, with retailers in Vadodara and Ahmedabad reporting limited stock of ghee. The supply issues are not limited to Gujarat, as similar shortages have been reported in Pune and Kolkata. The Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products, did not provide a comment on the supply problems.

Amul's sudden price adjustments have been driven by the crackdown on adulterated products and the resulting increase in demand for branded ghee. During the festive season, nearly 45% of annual ghee consumption typically occurs, placing additional pressure on supplies.