Did Mother Dairy Just Make Milk Cheaper by Rs 2 per Litre After GST Changes?
Synopsis
Exciting news for dairy lovers! Mother Dairy has announced a price cut of Rs 2 per litre for milk, following significant reforms in the GST system. This reduction not only benefits consumers but also applies to various dairy products, making quality dairy more accessible to families across India.
Key Takeaways
Milk prices reduced by Rs 2/litre Effective from September 22 Price cuts extend to multiple dairy products GST tax rates slashed for essential food items Amul yet to announce price changes
New Delhi, Sep 16 (NationPress) In a positive turn for consumers, milk prices have dropped by Rs 2 per litre following Mother Dairy's announcement to reduce its pricing. This change is aligned with the recent advancements made in the Goods and Services Tax (GST) framework.
The new pricing will take effect in about a week, specifically on September 22, coinciding with the implementation of revised GST slabs on various products.
In addition to milk, price reductions will also extend to several dairy products, including cottage cheese, butter, cheese, and ice creams, as part of the updated GST rates for food items.
This development is a result of significant reforms in GST, where the government has eased the tax burden on essential food items and stationery products. The tax rates have been reduced to 5% and zero, down from the previous 12% and 18% slabs.
Food items such as ultra-high temperature (UHT) milk, paneer/chena, and various types of bread, including paratha, khakhra, chapati/roti, and pizza bread, are now exempt from GST. The indirect taxes on packaged snacks, chocolates, sauces, juices, and coffee have also been decreased to 5%, which is expected to stimulate demand and foster industry growth.
Importantly, Mother Dairy had previously stated its intention to pass on these benefits to consumers.
Mother Dairy's Managing Director, Manish Bandlish, in response to the GST council's decision from September 4, remarked, “We appreciate the Union Government's initiative to lower GST rates on a broader array of dairy products, including paneer, cheese, ghee, butter, UHT milk, milk-based beverages, and ice creams.”
“By reducing these tax slabs, this initiative is likely to promote greater acceptance of packaged, value-added dairy products, enhance consumer preference for safe and quality offerings, and allow more families to access nutritious dairy products at better prices,” Bandlish added.
While Amul, another major player in the dairy industry, has not yet announced any price cuts, it is anticipated that leading brands will likely follow suit.
Point of View
I believe the recent price cuts by Mother Dairy represent an encouraging step towards making essential food items more affordable for the public. The revisions in GST not only aim to alleviate financial pressure on households but also promote the consumption of quality dairy products, which are vital for nutrition. This development is a testament to the government's commitment to support citizens during challenging economic times.
NationPress
9 May 2026
Frequently Asked Questions
When will the new milk prices take effect?
The new prices will come into effect on September 22.
What other products are affected by the price reduction?
Alongside milk, prices for cottage cheese, butter, cheese, and ice creams will also be reduced.
What are the new GST rates for dairy products?
The GST rates for essential food items, including various dairy products, have been reduced to 5% and zero.
Has Amul announced any price cuts?
As of now, Amul has not announced any price reductions, but it is expected that leading brands will follow Mother Dairy's lead.
How does this price cut benefit consumers?
The reduction in prices makes quality dairy products more affordable, promoting better nutrition for families.
