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The GST exemption aims to make milk more affordable amid rising inflation, ensuring families get cheaper, quality milk. Removing the 5% tax will directly benefit consumers
Following the removal of GST, milk prices are expected to decrease by about Rs 3 to 4 per litre. (Representative/PTI)
In a significant move, the government has announced that the prices of household staple milk are set to decrease soon. At the recent GST Council meeting, it was decided that packaged milk would be exempt from the 5% GST. This change will provide immediate relief in the prices of major milk brands like Amul and Mother Dairy as soon as it is implemented.
What’s Driving This Change
The main goal of this exemption is to make milk, an essential commodity, more affordable amidst rising inflation, ensuring that every family has access to cheaper and high-quality milk. The removal of the 5% tax will directly benefit common consumers.
What Are Amul And Mother Dairy Charging Now?
Current prices of Amul products include full cream milk ‘Amul Gold’ at approximately Rs 69 per litre, while toned milk is sold for Rs 57 per litre. Similarly, Mother Dairy’s full cream milk is priced at Rs 69 and toned milk at around Rs 57. Buffalo and cow milk prices range between Rs 50-75 per litre.
How Much Can Milk Prices Drop
Following the removal of GST, milk prices are expected to decrease by about Rs 3 to 4 per litre. For instance, the price of Amul Gold will drop to around Rs 65-66, while Mother Dairy’s full cream milk is anticipated to fall within the same range. Similar reductions will be observed for toned milk and buffalo milk.
Which Milk Will Cost Less?
Here are the expected price adjustments:
- Buffalo Milk: From Rs 75 to Rs 71-72
- Cow Milk: From Rs 58 to Rs 55-57
- Mother Dairy Full Cream: From Rs 69 to Rs 65-66
- Mother Dairy Toned Milk: From Rs 57 to Rs 55-56
- Mother Dairy Buffalo Milk: From Rs 74 to Rs 71
- Mother Dairy Cow Milk: From Rs 59 to Rs 56-57
When Will The New GST Rates Apply?
This new GST rates will come into effect on September 22, 2025. Post this date, prices of all packaged milk products, including those of Amul and Mother Dairy, will be set at the new GST-free rates, significantly reducing milk prices in the market.
Only UHT Milk to Get Cheaper, Says Amul MD
According to Amul, the GST on packed milk is already zero, hence there will be no price reduction. According to news agency ANI, Jayen Mehta, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF), said, “There is no change in the prices of fresh pouch milk, as GST on it has always been zero.”
He added that the government has reduced the GST on ultra-high temperature (UHT) milk from 5% to 0%, meaning only UHT milk will become cheaper starting September 22.
September 10, 2025, 10:44 IST
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