The Indian government has announced that packaged milk will be exempt from the 5% Goods and Services Tax (GST) to make it more affordable for consumers amid rising inflation. This decision was made at a recent GST Council meeting and is expected to benefit major milk brands like Amul and Mother Dairy. The removal of the 5% tax will directly benefit consumers, with milk prices expected to decrease by around Rs 3 to 4 per liter.
Currently, Amul’s full cream milk, “Amul Gold,” is priced at approximately Rs 69 per liter, while toned milk is sold for Rs 57 per liter. Mother Dairy’s full cream milk is also priced at Rs 69, with toned milk at around Rs 57. Buffalo and cow milk prices range between Rs 50-75 per liter. With the removal of GST, the prices of these milk products are expected to drop. For example, Amul Gold is anticipated to fall to around Rs 65-66, while Mother Dairy’s full cream milk is expected to drop to the same range.
The expected price adjustments for various milk products are as follows: Amul Gold (Full Cream) from Rs 69 to Rs 65-66, Amul Fresh (Toned Milk) from Rs 57 to Rs 54-55, and Amul Tea Special from Rs 63 to Rs 59-60. Similar reductions are expected for buffalo milk and cow milk. Mother Dairy’s products will also see a price drop, with full cream milk expected to fall from Rs 69 to Rs 65-66, toned milk from Rs 57 to Rs 55-56, and buffalo milk from Rs 74 to Rs 71.
The new GST rates will come into effect on September 22, 2025. After 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. This move aims to make milk, an essential commodity, more affordable for every family, ensuring access to cheaper and high-quality milk. The government’s decision is expected to provide immediate relief to consumers, who will benefit from the decreased prices of major milk brands.