India’s daily essentials are poised to return to their familiar “magic price points” by mid-November, as the government has allowed fast-moving consumer goods (FMCG) manufacturers to increase pack weights instead of cutting prices to reflect recent GST reductions. The move is expected to simplify pricing and restore normalcy in kirana stores and modern retail outlets after weeks of confusion.
Following the September 22 GST rate cut, FMCG companies were compelled to move away from round price tags since there was no clarity on adjusting pack weights. That left consumers and retailers dealing with awkward prices such as ₹4.45 for a biscuit pack or ₹1.77 for a shampoo sachet. Now, with a verbal nod from the Central Board of Indirect Taxes and Customs (CBIC), companies can resume selling ₹5 or ₹10 packs by slightly increasing product quantity—typically between 6% and 12%.
Mayank Shah, vice president of Parle Products, said fresh production has already started in segments like snacks, while categories requiring packaging changes will follow suit shortly. “Consumers will soon see ₹5 and ₹10 packs back on shelves, with more weight for the same price,” he said.
The industry expects the shift to ease operational and consumer challenges. Angelo George, CEO of Bisleri International, said the return to rounded price points “was only a matter of time,” emphasizing that consumers prefer predictable pricing.
Earlier, companies like Mondelez and Bisleri had introduced odd prices—₹26.69 for Bournvita and ₹9 for a 500 ml water bottle—to reflect the tax benefit. Retailers often rounded off or compensated with candies, complicating transactions.
While most players are set to follow the new structure, Amul has opted to maintain its reduced prices until formal notification, saying the intent behind the GST cut was to pass on savings directly to consumers.
