Mother Dairy Slashes Milk Prices After GST Revision

This decision comes after a significant overhaul in Goods and Services Tax (GST) rates, which has seen several essential food items either exempted from tax or moved into lower tax slabs. Alongside milk, prices of other dairy products such as paneer, butter, cheese, and ice cream will also be reduced in accordance with the new GST structure. The GST Council made a decision earlier this month to lower taxes on a diverse range of food products, reducing rates to 5 percent and even nil for certain items, down from the previous 12 and 18 percent slabs. Notably, items like ultra-high temperature (UHT) milk, paneer, and various bread types such as paratha and chapati have been exempted from GST.

Moreover, packaged foods, including chocolates, sauces, juices, and coffee, will now incur a lower levy of 5 percent. Mother Dairy's Managing Director, Manish Bandlish, has praised this move, highlighting that the benefits will be relayed to consumers. He stated, "We commend the Union Government’s decision to reduce GST rates on a wider range of dairy products. 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." Though Mother Dairy has initiated a price cut, other major players such as Amul have yet to make similar announcements. However, industry sources predict that leading brands will likely adjust their prices in the coming weeks.