As Mother Dairy slashes prices for milk products amid GST rejig, will Amul & others follow suit?

As Mother Dairy announced it will pass on 100 per cent GST reduction benefits to consumers, and most of its products including value-added dairy products and processed foods (under Safal brand) will become cheaper with effect from September 22.

The prices of paneer (200 gms) will reduce from Rs 95 to Rs 92, Ghee Carton Pack (1 litre) from Rs 675 to Rs 645, and butter 100 gm from Rs 62 to Rs 58.

Parallelly, the prices of various other products including Safal Frozen French Fries, Cassatta Ice Cream, pickles, tomato puree will also come down.

Other dairy brands have also responded to the GST reduction, with Amul stating no change in the price of packaged pouch milk after September 22. "There is no change proposed in prices of fresh pouch milk as as there is no reduction in GST," said the managing director of Gujarat Co-operative Milk Marketing Federation (GCMMF) Jayen Mehta, as quoted by ANI.

Speaking of Karnataka based KMF, Nandini had increased its milk prices to Rs 4 per litre while curd became costlier by Rs 4 per kg in March 2025.

Union Finance Minister Nirmala Sitharaman had called the GST reforms a victory for every citizen in the country. On September 3, she described the rationalization as 'Next-Gen GST Reform,' with the reforms coming into effect from September 22. The two-tier structure of 5 and 18 per cent is expected to make household items more affordable to consumers, and stronger market opportunities for players.

(With agency inputs)