Key Points:
- Widespread Price Cuts: Mother Dairy has announced price reductions across a wide range of its dairy and processed food products, effective September 22, 2025.
- Full GST Benefit Passed On: The company is passing on 100% of the benefits from recent GST reforms directly to consumers.
- Milk Price Drop: The price of a 1-litre pack of UHT (Tetra Pack) milk will decrease by ₹2, from ₹77 to ₹75.
- Other Dairy Products Cheaper: Significant price drops include ₹30 off on 1-litre cow ghee, ₹4 off on 100g butter, and ₹3 off on 200g paneer.
- No Change for Pouch Milk: Prices for daily-use pouch milk (toned, full cream, etc.) remain unchanged as they have always been exempt from GST.
New Delhi: In a move set to bring significant relief to household budgets, Mother Dairy has announced a substantial price cut across its portfolio of value-added dairy and Safal brand processed foods. The new, lower prices will come into effect on September 22, 2025, aligning with the implementation of the government’s historic GST 2.0 reforms.
Passing on 100% of GST Benefits
The price reduction is a direct result of the recent GST Council decision, announced on September 3, which rationalized tax slabs and lowered or eliminated GST on over 350 essential items. Mother Dairy has committed to passing on the entirety of these tax benefits to its customers.
“The recent GST reduction… represents a progressive step that will significantly boost consumption and accelerate the adoption of safe, high-quality packaged offerings,” said Manish Bandlish, Managing Director of Mother Dairy. “As a consumer-centric organisation, we are passing on 100% of the tax benefit to our patrons”.
Following these changes, Mother Dairy’s entire product portfolio will now fall under either the zero-tax category or the lowest 5% GST slab.
Detailed Price Reductions
While the headline reduction is the ₹2 drop on the 1-litre UHT toned milk tetra pack (from ₹77 to ₹75), the price cuts extend across a wide array of popular products.
| Product | Old Price (₹) | New Price (₹) | Reduction (₹) |
|---|---|---|---|
| Cow Ghee (1 litre) | 750 | 720 | 30 |
| Butter (100 gm) | 62 | 58 | 4 |
| Paneer (200 gm) | 95 | 92 | 3 |
| Milkshakes | 30 | 28 | 2 |
| Mixed Fruit Jam (500 gm) | 180 | 165 | 15 |
| Coconut Water (200 ml) | 55 | 50 | 5 |
| Safal French Fries (400 gm) | 100 | 95 | 5 |
Additionally, prices for various ice creams will be cheaper by up to ₹5-10, and other Safal products like Aloo Tikki and tomato puree will also see price drops. It is important to note that the prices of everyday pouch milk (full cream, toned, cow milk) will not change, as these products have always been exempt from GST.
Impact of GST 2.0 Reforms
The government’s GST reforms have simplified the tax structure by retaining only two slabs (5% and 28%) instead of the previous four. This has led to tax reductions on a wide range of items, including the complete exemption of GST on UHT milk, paneer, and certain breads, which were previously taxed. The tax on many processed foods, like those in the Safal range, has been reduced from 12% to 5%.
Manish Bandlish expressed confidence that this measure will have a positive impact on the entire value chain, benefiting farmers through increased demand and consumers through more affordable pricing. While Mother Dairy is the first major player to announce price cuts, it is expected that other dairy companies, including Amul, may align their prices in the coming weeks.
