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In a welcome relief for millions of households across India, the prices of packaged milk from leading brands Amul and Mother Dairy are set to drop by Rs 3 to Rs 4 per litre starting September 22, 2025. This price revision follows a key decision by the GST Council to remove the 5 percent Goods and Services Tax on packaged milk, making this essential commodity more affordable amid rising inflation.
Here’s a detailed look at the revised rate card, the rationale behind the move, and what it means for consumers.
Key highlights from the GST Council decision
- The GST Council has officially removed the 5 percent tax on packaged milk products
- This exemption applies to all major brands including Amul and Mother Dairy
- The revised pricing will come into effect from September 22, 2025
- The move is aimed at easing financial pressure on families and improving access to quality milk across income groups
Expected price changes across popular milk variants
- Amul Gold (Full Cream): Current price Rs 69 → Revised price Rs 65–66
- Amul Fresh (Toned Milk): Rs 57 → Rs 54–55
- Amul Tea Special: Rs 63 → Rs 59–60
- Buffalo Milk: Rs 75 → Rs 71–72
- Cow Milk: Rs 58 → Rs 55–57
- Mother Dairy Full Cream: Rs 69 → Rs 65–66
- Mother Dairy Toned Milk: Rs 57 → Rs 55–56
- Mother Dairy Buffalo Milk: Rs 74 → Rs 71
- Mother Dairy Cow Milk: Rs 59 → Rs 56–57
Why this price cut matters
- Milk is a daily staple in Indian households, used for tea, cooking, and nutrition, especially for children and elderly
- Rising inflation has made even basic commodities more expensive, prompting the government to intervene
- Removing GST on packaged milk ensures direct savings for consumers, especially in urban and semi-urban areas where packaged milk dominates the market
- The move also supports dairy farmers and cooperatives by boosting demand and ensuring stable pricing
Impact on consumers and retailers
- Retailers will update their rate cards and shelf prices starting September 22
- Consumers can expect immediate savings on their weekly grocery bills
- The price cut may also influence bulk buyers such as restaurants, cafes, and institutional kitchens
- Online grocery platforms and delivery services will reflect the revised prices in their listings
Industry response and future outlook
- Dairy cooperatives and private players have welcomed the GST exemption, calling it a timely and consumer-friendly decision
- Analysts expect a short-term spike in demand as consumers respond to lower prices
- The dairy industry may also see increased competition and innovation in packaging and distribution as brands vie for market share
- Long-term, the move could encourage more households to shift from loose milk to packaged options, improving hygiene and quality standards
What to watch next
- Whether other dairy products like paneer, curd, and flavored milk will see similar tax revisions
- How regional dairy brands respond to the pricing shift by national players
- The impact on dairy procurement prices and farmer margins in the coming quarters
Sources: The Daily Jagran