In good news for consumers, Mother Dairy on Tuesday said it is slashing prices across its range of dairy and food products after the government’s big Goods and Services Tax (GST) 2.0 revamp. The reduced prices will come into effect from September 22, the brand said.
Key dairy products such as UHT milk, paneer, ghee, butter, cheese, and milkshakes have seen price reductions, reflecting cuts in GST from 5–18% to 0–5% depending on the product. For instance, 1-litre UHT milk (Tetra Pack) is now Rs 75, down from Rs 77, while 500 gm butter drops from Rs 305 to Rs 285.
Similarly, Mother Dairy’s ice creams and Safal processed foods have also become more affordable. Ice cream items like Choco Vanilla Cone and Kesar Pista Kulfi are cheaper by Rs 5–10, while Safal products such as frozen French fries, Aloo Tikki, and packaged coconut water have reduced prices ranging from Rs 5 to Rs 15.
Notably, pouch Milk – the everyday poly pack milk (Full Cream Milk, Toned Milk, Cow Milk, etc.) – has always been exempted from GST and continues to be so, with no implications on its MRP.
Manish Bandlish, Managing Director, Mother Dairy, said, the recent GST reduction across a wide range of dairy and processed food products represents a progressive step that will significantly boost consumption and accelerate the adoption of safe, high-quality packaged offerings.
“We are passing on 100% of the tax benefit to our patrons, effective September 22, 2025, keeping up with the spirit of this reform.”
He further said, with this change, the company’s entire portfolio now falls either under the exempted/nil or the lowest slab of 5%.
A few days ago, Amul, one of the country’s most popular dairy brands clarified that there will be no reduction in pouch milk prices from September 22 as it already attracts zero percent GST. Responding to a query from ANI, Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products had said, “There is no change proposed in prices of fresh pouch milk as there is no reduction in GST. It has always been zero percent GST on pouch milk.”
The relief under the new tax structure will only apply to UHT milk, which will now become cheaper with the GST rate cut from 5 per cent to nil. “Only longlife UHT milk prices will be reduced with effect from September 22 due to reduction in GST from 5 per cent to Nil.” said Mehta
UHT in milk stands for Ultra-High Temperature (or Ultra Heat Treatment) processing, which involves heating milk to at least 135°C (275°F) for a few seconds, killing nearly all microorganisms and creating a sterile product. This process, combined with aseptic packaging like Tetra Packs, gives UHT milk a long shelf-life of several months without refrigeration.
Source: The Economic Times
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