Dairy Relief On The Shelf: Mother Dairy Slashes Prices After GST Reform

Mother Dairy, one of India’s leading dairy brands, has announced a sweeping reduction in prices across its product portfolio following the recent Goods and Services Tax (GST) revision. Effective September 22, 2025, the price cuts span essential items such as milk, paneer, butter, ghee, cheese, and milk-based beverages. The move is aimed at passing on the full benefit of the GST rate reduction to consumers, offering much-needed relief amid persistent food inflation.

 

The revised pricing reflects a shift in tax slabs, with several dairy products now falling under the nil or lowest GST categories. The company has confirmed that the changes will apply to over 100 stock-keeping units (SKUs), making packaged dairy more affordable and accessible to households across India.

 

Key Highlights From The Price Revision

 

- UHT toned milk (1 litre tetra pack) reduced to Rs 75 from Rs 77  

- UHT double toned milk (450 ml pouch) now priced at Rs 32, down from Rs 33  

- Paneer (200 gm) lowered to Rs 92 from Rs 95; malai paneer (200 gm) now Rs 97 from Rs 100  

- Butter (500 gm) reduced to Rs 285 from Rs 305; 100 gm pack now Rs 58 from Rs 62  

- Milkshakes (180 ml) across flavours now Rs 28, down from Rs 30  

- Cheese Cubes (180 gm) priced at Rs 135, down from Rs 145  

- Cheese Slices (480 gm) now Rs 380, reduced from Rs 405  

- Cheese Block (200 gm) priced at Rs 140, down from Rs 150  

- Cheese Spread (180 gm) now Rs 110, reduced from Rs 120  

- Diced Mozzarella (1 kg) down to Rs 575 from Rs 610  

- Ghee Carton Pack (1 litre) now Rs 645, down from Rs 675  

- Ghee Tin (1 litre) priced at Rs 720, reduced from Rs 750  

- Cow Ghee Jar (500 ml) now Rs 365, down from Rs 380  

- Premium Cow Ghee – Gir Cow (500 ml) reduced to Rs 984 from Rs 999  

 

GST Reform And Its Impact

 

The GST Council’s recent overhaul of tax rates has led to significant changes in the dairy sector. UHT milk, paneer, cheese, butter, ghee, and milk-based beverages have seen their GST rates drop from 5 to 0 percent or from 12 to 5 percent, depending on the category. Ice creams and processed foods under the Safal brand have also benefited, with GST rates reduced from 18 to 5 percent.

 

Pouch milk, which includes full cream, toned, and cow milk in poly packs, remains exempt from GST and continues to be sold at its existing price. The reform is expected to stimulate demand for packaged dairy products and encourage consumers to shift toward safer, high-quality offerings.

 

Consumer-Centric Strategy

 

Mother Dairy’s decision to pass on 100 percent of the GST benefit aligns with its commitment to affordability and consumer welfare. The company has emphasized that the price cuts will help families access nutritious dairy products at better value, especially in urban and semi-urban markets where packaged goods are gaining popularity.

 

The move also supports farmers and suppliers by boosting demand for raw milk and allied inputs. With a turnover of Rs 17,500 crore in the last fiscal year, Mother Dairy’s pricing strategy is expected to influence broader market trends and encourage competitive pricing across the sector.

 

Market Outlook And Industry Response

 

Industry experts view the price reduction as a progressive step that balances consumer needs with economic growth. By lowering the cost of value-added dairy products, the reform is likely to accelerate adoption and expand market penetration. Retailers and distributors have welcomed the move, anticipating increased footfall and higher sales volumes.

 

Mother Dairy’s initiative may also prompt other brands to follow suit, creating a ripple effect across India’s dairy and processed food ecosystem. The company’s transparent pricing and proactive communication have set a benchmark for GST-aligned consumer engagement.

 

Sources: MSN India, Times Now News, Financial Express, Livemint