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.
{{/usCountry}}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.
{{/usCountry}}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 ₹130 to ₹122 and Chyawanprakash (900 gm) from ₹475 to ₹440. It has also reduced the price of its Dabur Red and Meswak brand toothpastes (200 gm) to ₹135 from ₹153. Prices of digestive pills Hajmola (120 tab) have also been slashed to ₹65 from ₹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 ₹120 to ₹116.
Similarly, it has also extended the price of Nescaffe Classic (45gm) to ₹235, slashing price of ₹30 and ₹95 on Nescafe Gold to ₹755.
ITC has slashed the price of Savlon (100 ml) to ₹374 from ₹400. It has reduced prices of cow ghee (1 litre) to ₹1,010 from ₹1,080 and Sunfeast Marie Light (956 gm pack) to ₹150 from ₹170.
Food & beverages major PepsiCo's distributor Varun Beverages has slashed the prices of Tropica Apple Juice (1 litre) to ₹105 from ₹115, mango juice slice (1.2 litre) from ₹70 to ₹65 and Aquafina water bottle (1 litre) to ₹18 from ₹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 ₹50 to ₹399 for pack of 350 gm and ₹100 on its chocolate Ferrero Rocher to ₹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 ₹62 to ₹58 and ghee (1 litre) to ₹610 from ₹650.
Amul's paneer (200g) will cost ₹95 from ₹99 and the range of its ice cream will start from ₹9 to ₹550, down from the earlier ₹10 to ₹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 ₹50 to 750 and its Glimmer and Get real Soaps (pack of 5) from ₹135 to ₹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 ₹69 to ₹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.