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FMCG Firms Cut Prices of Essentials, Extending GST 2.0 Benefits

Leading FMCG companies, including Dabur, ITC, Nestle, Amul, HUL, and P&G, have slashed prices on soaps, shampoos, dairy, snacks, and beverages following GST 2.0, with revised MRPs effective Monday September 22, 2025 .

Daily staples and food products set to get cheaper from Monday, boosting consumption ahead of festivals.

New Delhi: Daily essentials and food products will be cheaper from Monday, as leading FMCG companies have slashed prices, extending GST cut benefits to consumers. The move is expected to lead to a spike in consumption and a surge in sales during the upcoming festival season, which starts with the Navratra celebrations.

FMCG companies have extended benefits of GST 2.0 with immediate reduction on price without any disruption, along with some discounts for festivals as they expect to enter a new growth phase after facing a few challenging quarters that saw persistent food inflation and slow pace of urban consumption.

Companies operating in the space of FMCG products have issued revised price lists with new MRPs on their products, including soaps, shampoo, baby diapers, toothpaste, razors, and after-shave lotions, effective from September 22.

Besides, firms operating in the food verticals have also slashed prices on products as snacks as namkeen and bhujia to sweets, coffee, tea, butter, ghee, ice-cream, chocolates, etc.

The makers have dispatched products with revised MRP tags to inventories of distributors, warehouses of e-coms and shelves of traditional kirana stores, absorbing the tax gap.

Moreover, existing stocks in the market have been aligned with revised new goods & service tax (GST) structure through special trade discounts and QPS schemes.

Leading FMCG firms such as Dabur, ITC, Procter & Gamble, Emami, Nestle, RCPL, Amul and HUL have come up with new price lists that have been communicated to their respective distributors and consumers through their respective websites or through advertisement in local dailies.

Home-grown firm Dabur has reduced the prices of Real Juice (pack of 1 Ltr) from Rs 130 to Rs 122 and Chyawanprakash (900 gm) from Rs 475 to Rs 440. It has also reduced the price of its Dabur Red and Meswak brand toothpastes (200 gm) to Rs 135 from Rs 153. Prices of digestive pills Hajmola (120 tab) have also been slashed to Rs 65 from Rs 70.

Nestle India has not only increased prices of its instant noodles Maggi from 500 gm to 600 gm but also reduced the price from Rs 120 to Rs 116.

Similarly, it has also extended the price of Nescaffe Classic (45gm) to Rs 235, slashing price of Rs 30 and Rs 95 on Nescafe Gold to Rs 755. ITC has slashed the price of Savlon (100 ml) to Rs 374 from Rs 400. It has reduced prices of cow ghee (1 litre) to Rs 1,010 from Rs 1,080 and Sunfeast Marie Light (956 gm pack) to Rs 150 from Rs 170.

Food & beverages major PepsiCo’s distributor Varun Beverages has slashed the prices of Tropica Apple Juice (1 litre) to Rs 105 from Rs 115, mango juice slice (1.2 litre) from Rs 70 to Rs 65 and Aquafina water bottle (1 litre) to Rs 18 from Rs 20. Prices of aerated-based drinks remain unchanged as they would continue to face 40 per cent duty under GST 2.0.

GST 2.0 has two slabs of 5 per cent and 18 per cent as against the current four slabs of 5, 12, 18 and 28 per cent. Most daily essentials have been placed in the lower 5 per cent, barring detergent and cosmetics, which remain under the earlier 18 per cent slab.

FMCG products such as hair oil, soap, face powders, shampoos, toothbrushes, and toothpaste, along with all food items, will come under the lower slab of 5 per cent from the present 18 per cent.

Confectionery major Ferrero has reduced its popular chocolate spread Nutella by Rs 50 to Rs 399 for pack of 350 gm and Rs 100 on its chocolate Ferrero Rocher to Rs 879 for 300 gm.

Similarly, dairy and food brand Amul has also slashed the prices of products, including ghee, butter, ice cream, and snacks. It has reduced butter prices (100 gm) from Rs 62 to Rs 58 and ghee (1 litre) to Rs 610 from Rs 650.

Amul’s paneer (200g) will cost Rs 95 from Rs 99 and the range of its ice cream will start from Rs 9 to Rs 550, down from the earlier Rs 10 to Rs 600.

A recent study report released by industry body FICCI estimates that GST 2.0 will result in a short-term revenue loss but this can be compensated by the broader consumption boost, improved compliance, and wider coverage over time.

The country’s fastest-growing FMCG firm, Reliance Consumer Products Ltd (RCPL) had slashed price of its cow ghee (1 litre) by Rs 50 to 750 and its Glimmer and Get real Soaps (pack of 5) from Rs 135 to Rs 120. Leading FMCG major Procter & Gamble has reduced the prices of products under brands Vicks, Head & Shoulders, Pantene, Pampers (diapers), Gillette, Old Spice and Oral-B, among others.

As per the list, Vicks Action 500 Advance and Vicks Inhaler prices have been reduced from Rs 69 to Rs 64, as the GST rate has gone down from 12 per cent to 5 per cent. Home-grown FMCG firm Emami has reduced prices on Boroplus Antiseptic Cream, Navratna Ayurvedic Oil and talc, Zandu balm, etc. Leading FMCG major HUL has also announced reducing prices of its consumer product range, including Dove shampoo, Horlicks, Kissan Jam, Bru Coffee, Lux and Lifebuoy Soaps, effective September 22.

( Source : PTI )

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  • Kumar Bahukhandi

    Kumar Bahukhandi is a journalist, educator and writer, and an Assistant Professor of Journalism and Mass Communication. He is the Founder and Editor of Channel24India and Editor of Prime Look – The International Research Journal and Prime Review. His writing explores human behaviour, relationships, emotions and the choices that shape everyday life. Through journalism, short stories and reflective essays, he brings together academic inquiry and a curiosity about people. Guided by the principle of “simple living and high thinking”, Kumar values authenticity, modesty and respect for every individual, regardless of status or background. He believes in remaining true to himself, listening to his inner voice and finding meaning in ordinary experiences.

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