New Delhi: Consumers will soon get some relief as Mother Dairy has slashed milk prices by ₹2 per litre. The revised prices will be applicable from September 22, coinciding with the rollout of the new Goods and Services Tax (GST) slabs.
The price cut is not limited to milk. It will extend to a range of dairy products such as paneer, butter, cheese, and ice cream, following the recent GST revisions.
GST Reforms to Benefit Consumers
The Union government’s decision to restructure GST rates has paved the way for this reduction. The revamped system has lowered tax slabs from 12% and 18% down to 5% and nil for many essential food and household items.
Among the products exempted from GST are UHT milk, paneer/chena, various breads (paratha, parotta, chapati/roti, pizza bread), and khakhra. Packaged food items like chocolates, sauces, juices, and coffee will now attract only 5% GST, a move expected to boost demand and industry growth.
Mother Dairy Welcomes the Move
Mother Dairy’s Managing Director, Manish Bandlish, praised the GST Council’s decision on September 4, saying:
“We commend the Union Government’s decision to reduce GST rates on a wider range of dairy products, including paneer, cheese, ghee, butter, UHT milk, milk-based beverages, and ice creams.”
He further added:
“By lowering the tax slabs, the move will encourage wider adoption of packaged, value-added dairy products, strengthen consumer preference for safe and quality offerings, and enable more families to enjoy wholesome dairy goodness at better value.”
Other Brands Yet to Announce Cuts
While Amul, another dairy giant, has not yet announced a price reduction, industry experts believe that other major brands are likely to follow Mother Dairy’s lead in passing on the GST benefits to consumers.