The Indian government recently reduced the Goods and Services Tax (GST) on packaged milk from 5% to 0%, effective September 22. This move led to speculation that milk prices might decrease, with some reports suggesting a possible reduction of up to Rs 4 per liter for brands like Amul and Mother Dairy. However, Amul’s Managing Director, Jayen Mehta, has refuted these claims, stating that their milk prices will not decrease.
According to Mehta, the GST on packed milk was already zero, so there will be no price reduction. The government’s decision only affects ultra-high temperature (UHT) milk, which will become cheaper starting September 22. UHT milk is heated to a high temperature, eliminating most microorganisms, and is often packaged in tetra packs, allowing it to remain safe for consumption for several months without refrigeration.
Currently, Amul’s milk prices are as follows: Amul Gold (full cream) milk is priced at Rs 69 per liter, while Amul toned milk is available at Rs 57 per liter. Buffalo milk is being sold at Rs 75 per liter, and cow milk is priced at Rs 58 per liter. Mother Dairy’s prices are similar, with full cream milk at Rs 69 per liter and toned milk at Rs 57 per liter.
Mehta clarified that the price reduction will only apply to UHT milk, which is a specific type of milk that is not as widely consumed as regular packed milk. Therefore, consumers should not expect a decrease in prices for regular milk products from Amul and other brands. The reduction in GST will, however, make UHT milk more affordable, which may benefit some consumers who prefer this type of milk. Overall, the prices of regular milk products from Amul and other brands are expected to remain unchanged.