Starting today, prices of key dairy products across India have dropped following a major overhaul in the Goods and Services Tax (GST) structure. The revised rates, effective from September 22, have resulted in a price reduction for ghee, butter, cheese, paneer, UHT milk, and other packaged dairy items, offering relief to consumers nationwide.
The GST Council, under its “GST 2.0” reform initiative, has slashed tax rates on several dairy items. UHT milk and packaged paneer have been moved to the nil GST category (0%), while other processed dairy products like butter, ghee, cheese, and ice cream now attract just 5% GST, down from the earlier 12%.
Leading cooperatives, including Mother Dairy, Amul, Nandini (Karnataka Milk Federation), and Milma (Kerala Cooperative Milk Marketing Federation) have all announced price cuts in line with the new rates.
Mother Dairy has reduced the price of its one-litre UHT milk tetra pack from ₹77 to ₹75. Its 200g paneer now costs ₹92, while a 100g pack of butter has dropped from ₹62 to ₹58. Ghee (1-litre carton) has been cut from ₹675 to ₹645.
Amul has revised prices across over 700 product variants. Ghee (1 litre) is now ₹610, down by ₹40, while processed cheese (1 kg) has been reduced to ₹545. A 200g pack of frozen paneer is now priced at ₹95, down from ₹99.
Nandini and Milma have also announced reductions on ghee, butter, paneer, flavored milk, and curd, with new rates effective from today.
However, the price of regular pouch milk remains unchanged as it has always been exempt from GST.
The move is expected to increase the affordability of dairy products and boost demand, particularly for value-added items that were previously costlier due to higher tax rates. Dairy brands have confirmed they will pass on the full benefit to consumers.
As the festive season demand approaches, the tax cut is seen as timely support for both consumers and the dairy industry.
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