Amul Hikes Butter, Ghee Prices Ahead of Diwali

Amul has increased the prices of its popular butter and ghee products ahead of Diwali, adding to household expenses during the festive season. The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul products, has raised the price of a 1-kg ghee carton by ₹50 to ₹680. A 500-gram butter pack has also become costlier by ₹15 and now carries a price of ₹325.

The latest revision also affects smaller packs of butter and pure ghee. The price increases come amid rising demand for branded dairy products and reported supply shortages in several Indian markets. Retailers in Gujarat and other cities have reported difficulty maintaining stocks, particularly of cow ghee. The development is likely to affect consumers preparing sweets and festive meals, when demand for ghee and butter typically increases.

Amul’s New Ghee and Butter Prices

The revised prices cover four popular product categories, with increases ranging from ₹3 to ₹50 depending on the pack size.

Amul product	Earlier price	New price	Increase
Ghee, 1-kg carton	₹630	₹680	₹50
Pure ghee, 500-gm pouch	₹325	₹345	₹20
Butter, 100-gm pack	₹63	₹66	₹3
Butter, 500-gm pack	₹310	₹325	₹15

The largest increase applies to the 1-kg ghee carton, which has become approximately 7.9% more expensive. The 500-gram pure ghee pouch has increased by around 6.2%, while the 500-gram butter pack is up by approximately 4.8%.

The revised maximum retail prices mean consumers will have to spend more when purchasing these products for everyday cooking and festive preparations.

Why Has Amul Increased Prices?

The price revision comes at a time when demand for branded ghee has reportedly increased across several markets.

A cooperative leader associated with Amul attributed the increase in demand to government action against adulterated and counterfeit ghee in Gujarat and Rajasthan. According to the industry representative, authorities seized approximately 2 lakh kilograms of duplicate ghee across the two states during the preceding six months.

The enforcement action appears to have encouraged some consumers to shift towards established dairy brands. Buyers concerned about product authenticity may prefer packaged products from recognised manufacturers rather than unverified alternatives.

The festive season has added further pressure. According to the cooperative representative cited in media reports, nearly 45% of annual ghee consumption takes place during the festive period.

This combination of higher demand and limited availability has reportedly created pressure on distribution networks.

Amul Cow Ghee Shortages Reported in Several Cities

Alongside the price increases, retailers have reported shortages of certain Amul dairy products, particularly cow ghee.

Retailers in Vadodara and Ahmedabad said stocks had remained limited since the Ganesh festival. Some outlets reportedly received only a fraction of their usual requirements.

A D-Mart outlet in Ahmedabad’s Satellite area was reported to have run out of Amul ghee and butter on November 3.

Supply concerns have also been reported in Pune and Kolkata, with earlier complaints emerging from other markets, including Jammu and Kashmir.

In Vadodara, some Amul parlour operators reportedly raised concerns with distributors over inadequate supplies. Although distribution arrangements were subsequently streamlined, retailers said cow ghee availability remained constrained.

Amul’s online platform also showed several ghee varieties as unavailable, including pure ghee and buffalo ghee at the time of reporting.

However, the exact extent of the shortages across India remains unclear. The reported supply problems should not necessarily be interpreted as a nationwide shortage affecting every Amul product or retail location.

GST Reduction Benefits Partly Offset by New Price Hikes

The latest increases come after consumers received some relief from the GST reduction introduced in September 2025.

At that time, the GST rate applicable to several dairy products was reduced from 12% to 5%. Amul subsequently announced price reductions across more than 700 dairy products.

Some of the earlier price changes included:

Product	Price before GST reduction	Price after reduction
Ghee, 1-litre carton	₹650	₹610
Ghee, 5-litre tin	₹3,275	₹3,075
Butter, 100-gm pack	₹62	₹58
Butter, 500-gm pack	₹305	₹285

The latest increases have reduced much of the benefit consumers received from those earlier price reductions.

For example, the 500-gram butter pack had fallen to ₹285 following the GST adjustment but now costs ₹325. Similarly, the 1-kg ghee carton has increased from ₹630 to ₹680.

The comparison involves different packaging and earlier price revisions, so the GST-related reductions and latest increases should be viewed as separate pricing changes rather than a direct reversal of an identical price point.

What the Price Hike Means for Consumers

The timing of the increase is significant because ghee and butter are widely used in Indian households during the festive season.

Families preparing traditional sweets, snacks and other Diwali dishes may face higher grocery bills. Restaurants, sweet shops, bakeries and other food businesses that use dairy ingredients could also face higher input costs if the revised prices extend across their procurement channels.

Consumers may respond by purchasing smaller packs, comparing alternative brands or adjusting their festive shopping budgets.

However, product availability could be as important as pricing. If supplies remain constrained in certain markets, consumers may find it difficult to purchase specific varieties even at the revised prices.

The Bigger Picture

Amul’s latest price revision highlights the relationship between food demand, supply availability and consumer confidence in India’s dairy market. Enforcement action against counterfeit products can encourage consumers to move towards established brands, but a sudden shift in demand can put pressure on manufacturing and distribution networks.

The development also shows that GST reductions do not guarantee permanently lower retail prices. Changes in demand, input costs, product availability and distribution conditions can influence prices independently of tax policy. For India’s dairy industry, maintaining reliable supply during peak consumption periods will remain important for both consumer confidence and brand competitiveness.

Looking Ahead

Consumers will watch whether Amul and its distribution partners can improve the availability of cow ghee and other popular dairy products during the festive period. Retailers will also monitor whether the higher demand continues after Diwali or eases once seasonal consumption returns to normal. Any further changes in product availability or retail pricing could influence purchasing decisions.

For Amul, the immediate challenge is to balance demand, supply and pricing while maintaining its position in India’s competitive packaged dairy market. For households, the latest increases mean that ghee and butter purchases may require a slightly larger festive budget this year. The longer-term effect will depend on whether supply conditions improve and how dairy prices evolve in the coming months.