Daijiworld Media Network - New Delhi

New Delhi, Sep 16: In a welcome move for households across India, Mother Dairy has announced a Rs 2 per litre reduction in milk prices, with a broader price cut expected on various dairy products in the coming days. The revised pricing will take effect from September 22, aligning with the implementation of the new Goods and Services Tax (GST) reforms.

The price slash is part of a broader response to the latest GST Council decisions, which significantly reduced tax rates on essential food and dairy products. Alongside milk, items like paneer, cheese, butter, ghee, and ice creams are also expected to become more affordable under the revised 5% or zero tax slabs, down from the earlier 12% and 18% categories.

These reforms come as part of a next-generation overhaul of the GST regime, aimed at easing the cost of living and stimulating consumer demand. Under the revised structure, several everyday food items—including UHT milk, breads (like parathas, rotis, and pizza bases), and khakhra—have been exempted from GST altogether, while packaged snacks, chocolates, juices, sauces, and coffee now attract just 5% GST.

Mother Dairy, one of India’s leading milk suppliers, had earlier assured that any financial relief granted through tax cuts would be passed on to consumers. Staying true to its commitment, the company has acted swiftly following the GST revisions.

Reacting to the GST Council’s September 4 decision, Mother Dairy Managing Director Manish Bandlish praised the government’s move, stating:

“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 added that lowering tax burdens will not only make dairy products more affordable but also encourage wider adoption of safe, packaged, value-added products, enabling more families to access nutritious options at better prices.

While Amul, another major player in the dairy sector, has not yet announced any price revisions, industry insiders expect other brands to follow Mother Dairy’s lead in the coming days.

The latest changes are expected to bring both economic relief and nutritional benefits to millions of Indian households, while simultaneously boosting growth in the packaged dairy and food sector.