FMCG majors cut prices as firms pass on GST benefit to consumers

Mother Dairy, Hindustan Unilever and others announced price cuts across dairy, foods, ice creams, soaps and shampoos, as GST benefits are passed on to consumers from September 22

Several fast-moving consumer goods (FMCG) companies have said that they would pass on the full benefit of   goods and services tax (GST) rate cuts to consumers starting September 22.

 

Dairy major Mother Dairy, on Tuesday, announced rate cuts in products spanning its portfolio-- from milkshakes to paneer and jams to frozen products under its Safal brand. 

“The recent GST reduction across a wide range of dairy and processed food products represents a progressive step that will significantly boost consumption and accelerate the adoption of safe, high-quality packaged offerings. As a consumer-centric organisation, we are passing on 100 per cent of the tax benefit to our patrons,” said Manish Bandlish, managing director at Mother Dairy. 

 

So, the price of a 200-gm paneer pack will come down to ₹92 from ₹95. While the 400-gram paneer will cost ₹174, down from ₹180 earlier as packaged paneer will be exempt from GST. It faced a 5 per cent GST.

 

Meanwhile, 180 ml packs of milkshakes will now retail at ₹28 instead of ₹30. Prices of 500 gm and 100 gm butter will fall to ₹285 and ₹58 down from ₹305 and ₹62 earlier. The 180-gm pack of cheese cubes will fall to ₹135 from ₹145 earlier.

 

Additionally, 200-gm packs of tomato puree will cost ₹25, down from ₹27 earlier, while 400-gm pack of pickles will cost ₹120, which was ₹130 earlier.

 

These were in the 12 per cent slab earlier and have moved to the 5 per cent slab now.

 

Meanwhile, ice creams, which attracted 18 per cent GST earlier, will now move to the 5 per cent slab. Chocobar, vanilla cups, and ice candies priced at ₹10 earlier will cost ₹9, while prices of 100 ml of butterscotch cones will fall to ₹30 from ₹35 earlier and 150-ml packs of cassata will cost ₹ 60 from ₹70 earlier.

 

“With this change, our entire portfolio now falls either under the exempted/nil or the lowest slab of 5 per cent. We are confident this measure will positively impact the entire value chain: farmers will benefit from increased demand, while consumers will gain from affordable pricing and greater access,” Bandlish added.

 

On Saturday, consumer goods major Hindustan Unilever, in newspaper advertisements as mandated by the government, announced price cuts in several products of its portfolio.

 

Effective from September 22, the cost of a 340-ml bottle of Dove shampoo will fall to ₹435 from ₹490 earlier, while the cost of a pack of four 75-gm Lifebuoy soaps will drop to ₹60 from ₹68 earlier. A 350-ml pack of Sunsilk black shine shampoo will cost ₹370 down from ₹430 earlier.

 

In the foods category, a 300-gm pack of Boost will cost ₹110, down from ₹124, while a 67-gm pack of Knorr soup will cost ₹55 from ₹65 earlier, and a 75-gm pack of Bru coffee will cost ₹270 down from ₹300 earlier.

 

The maker of Pantene shampoo and Ariel detergent powder, Procter & Gamble, also announced MRP cuts for several SKUs across its brand portfolio, which will be effective from September 22.

 

Prices of Vicks inhaler will fall to ₹64 from ₹69 earlier, while 105-ml pack of Vicks Vaporub will cost ₹318, from ₹340 earlier. Meanwhile, shampoos prices across its brands Head and Shoulders, Herbal Essence and Pantene are also set to fall. Prices of baby diapers under the Pampers brands will also fall by up to ₹100 in some SKUs.

   

Meanwhile, prices of Oral B branded Everyday Care Toothbrush will fall to ₹30 from ₹35 earlier.