Starting today, September 22, 2025, major dairy brands Amul and Mother Dairy have lowered prices on many products following a recent GST rate cut by the government. This move aims to pass tax savings directly to consumers, making essentials like milk, ghee, and butter more affordable amid rising living costs.
Understanding the GST Rate Changes
The GST Council made key decisions in its latest meeting to reduce taxes on dairy items. These changes took effect today and focus on everyday food products that families rely on.
Officials explained that cutting GST helps ease the burden on households, especially during festive seasons like Navratri. The reductions apply to packaged goods, which now face lower or zero tax rates.
This is part of a broader GST 2.0 reform, which also touches other sectors like hygiene and snacks. Experts say it could boost demand for dairy and support farmers by increasing sales volumes.
How Prices Are Changing for Amul Products
Amul, run by the Gujarat Cooperative Milk Marketing Federation, announced cuts on over 700 items. The company stated it wants to share all GST benefits with buyers right away.
Products like ghee see the biggest drops, with some reductions up to 40 rupees per liter. This comes at a time when food inflation has been a concern for many Indian families.
Amul’s move follows similar actions in the past, such as minor price tweaks earlier this year. Analysts predict this could lead to higher market share for the brand in competitive areas.
Here is a table showing some key Amul price reductions effective today:
| Product | Old Price (INR) | New Price (INR) | Reduction (INR) |
|---|---|---|---|
| Ghee (1L) | 650 | 610 | 40 |
| Butter (100g) | 62 | 58 | 4 |
| Cheese Block (1kg) | 575 | 545 | 30 |
| Frozen Paneer (200g) | 99 | 95 | 4 |
| UHT Milk (1L, approx.) | 70 | 67 | 3 |
These figures vary slightly by region, but the overall trend shows savings across the board.
Amul also cut prices on ice cream, chocolates, and frozen snacks. Company leaders say this will help during the upcoming holiday season when demand peaks.
Mother Dairy’s Response and Price Adjustments
Mother Dairy, a popular brand in northern India, quickly followed suit with its own price cuts. The company focuses on value-added dairy and Safal brand items like frozen foods.
This reduction aligns with the firm’s goal to keep products affordable for urban consumers. It affects items that were previously taxed at higher rates.
Mother Dairy highlighted that UHT milk and paneer now have zero GST, leading to direct savings. This is expected to benefit school-going children and working families who buy these regularly.
- UHT Milk: Now tax-free, with prices dropping by about 2 to 3 rupees per liter.
- Ghee and Butter: Reduced from 12 percent to 5 percent GST, saving up to 40 rupees on larger packs.
- Cheese and Milkshakes: Similar tax cuts mean lower costs for snacks and treats.
- Safal Products: Items like jams, pickles, and frozen snacks see 5 percent GST, cutting prices by 5 to 10 percent.
These changes build on Mother Dairy’s earlier efforts, such as expanding franchises to reach more areas. Experts note this could spark similar moves from rivals like Nandini in southern states.
The company estimates that families could save hundreds of rupees monthly on dairy buys. This comes amid global dairy trends where prices have fluctuated due to supply chain issues.
Impact on Consumers and the Economy
Lower prices mean real savings for millions of households. For instance, a family buying milk daily could save enough for an extra grocery item each week.
This GST cut ties into larger economic goals, like controlling inflation before major festivals. Recent data shows food prices rose by about 5 percent last quarter, so this relief is timely.
Farmers might see indirect benefits as higher sales could increase demand for raw milk. Industry groups praise the move, saying it supports rural economies.
However, some experts warn that not all milk types are affected, as fresh milk was already tax-free. Still, the overall effect should be positive for buyers.
What This Means for the Future
Looking ahead, these changes could set a pattern for other sectors. If dairy sales rise, the government might consider more tax relief on essentials.
Brands like Amul and Mother Dairy plan to monitor market response and adjust as needed. This could lead to new product launches at competitive prices.
Consumers should check local stores for exact prices, as regional taxes might vary slightly. Overall, this step promotes fair pricing in a key industry.
We encourage you to share this article with friends and family who might benefit from these savings. Drop a comment below on how these price cuts affect your shopping – your thoughts help us cover what matters most.
