Milk to Get Cheaper as Mother Dairy to Transfer GST Benefit to Customers

Effective September 22, 2025, Mother Dairy will reduce prices on its range of dairy and processed food products by up to ₹2, aligning with the GST 2.0 reform. This move is intended to fully pass on the benefits of GST reductions to consumers across India.

Mother Dairy Revises Prices Following GST Reduction

Mother Dairy announced a price cut across several dairy items such as Ultra-High Temperature (UHT) milk, paneer, ghee, cheese, and ice creams due to a GST revision. UHT milk now attracts 0% GST, down from 5%, bringing the price of a 1-litre tetra pack from ₹77 to ₹75.

Paneer is now priced at ₹92 for 200 gm, down from ₹95. Other major changes include butter (500 gm) reduced from ₹305 to ₹285 and cheese cubes (180 gm) down from ₹145 to ₹135.

Frozen Foods and Beverages Also See Price Drop

Mother Dairy’s value-added food brand, Safal, has also implemented price cuts. Frozen French fries (1,000 gm) are now available at ₹215, lowered from ₹230. Ice cream favourites like Choco Vanilla Cone and Kesar Pista Kulfi are reduced by ₹5-₹10. 

Likewise, Safal’s coconut water 200 ml now costs ₹50 instead of ₹55. The changes come from GST dropping from 12% or 18% to 5% on these items.

Read More: HUL Slashes Prices on Dove, Kissan Jam, Horlicks, Lux, and Lifebuoy Soaps Amid GST Reforms!

No Price Change in Pouch Milk Products

The everyday poly pack milk variants, such as Full Cream, Toned, and Cow Milk, remain unchanged as they were already exempt from GST. These staple products will continue to be sold at their existing Maximum Retail Price, ensuring affordability for daily milk consumers.

Strategic Move To Drive Packaged Dairy Consumption

By placing almost its entire product portfolio under the nil or lowest GST slab, Mother Dairy aims to encourage more consumers to adopt high-quality, safely packaged dairy offerings. The reduction ranges from ₹1 to ₹30 across categories, with combo ice creams and large cheese blocks among the highest drops.

Conclusion

Mother Dairy’s decision to cut prices across various dairy and food items reflects its commitment to passing on the GST reform benefit to consumers. With effective savings on essentials like milk, butter, paneer, and ice creams, the move is expected to boost consumption and packaged food penetration across markets.

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