Rise in Amul Ghee and Butter Prices Impacts Household Budgets

The rising prices of ghee and butter, used daily in kitchens and for preparing sweets during festivals, are directly impacting the budgets of common households. The Gujarat Cooperative Milk Marketing Federation (GCMMF) has increased the rates of products sold under the Amul brand.

According to a report by Sandesh (Business), as per the new rates effective from November 2, 2026, the price of 1 litre of Amul cow ghee has increased from ₹695 to ₹735, marking a rise of ₹40. Similarly, the price of a 500 gram pack of table butter has increased from ₹310 to ₹325, recording an increase of ₹15.

This price hike is being observed despite a continuous increase in milk production in the country. Milk production in India was 165.1 million tonnes in 2016, which is estimated to increase to 216.5 million tonnes by 2025. Nevertheless, dairy companies are facing a shortage of milk fat. Sufficient fat is not available for the production of ghee and butter, leading to increased production costs for companies.

A significant surge has also been seen in butter prices. During the three-year period between October 2023 and October 2026, the average price of butter at the dairy level rose from ₹348 per kg to ₹537 per kg, representing an increase of approximately 54.3 per cent. In the same period, the price of skimmed milk powder (SMP) also rose from ₹250 to ₹295 per kg, an increase of 18 per cent.

Other technical reasons are also responsible for the price hike. From September 22, 2025, the GST rate on ghee, butter, and paneer was reduced from 12% to 5%. This reduction led to a sudden surge in demand for these products in the market, creating a strain on the supply.

Additionally, from September 2024, FSSAI and state food safety departments initiated strict action against adulterated ghee and fake paneer. As fake products were removed from the market, consumer confidence in branded and pure dairy products increased, leading to a higher demand for pure milk and high-fat products, which played a role in the price increase.