Driven by the recent GST 2.0 reforms, Nandini, Mother Dairy, and Amul have announced price cuts on a wide range of milk products, effective September 22, 2025. These revisions aim to pass on the benefits of reduced Goods and Services Tax (GST) rates to consumers, boosting household savings and stimulating demand.
GST 2.0: A Simplified Tax Structure
The GST Council's decision to overhaul the GST framework has resulted in a simplified tax structure with fewer slabs. The previous system of 5%, 12%, 18%, and 28% has been streamlined to 5% and 18% for most goods and services, with a 40% rate for "sin goods" like high-end cars and tobacco products. A "Nil GST" rate has also been introduced for essential items like pre-packaged paneer and UHT milk. These changes are designed to reduce compliance challenges, cut disputes, and make goods and services more affordable.
Nandini's Price Reductions
The Karnataka Milk Federation (KMF), which owns the brand 'Nandini', has announced revised prices for 21 of its products. These price drops, effective September 22, 2025, include:
Other Nandini products with reduced prices include ice cream family packs, chocolate sundaes, mango naturals ice cream, savories, muffins, cakes, and packaged drinking water. KMF has clarified that the price cuts apply only to Nandini milk products, while the rates of milk and curd will remain unchanged.
Mother Dairy's Price Cuts
Mother Dairy has also announced price cuts on over 150 products, passing on "100 per cent of the tax benefit" to consumers. These reductions, ranging from ₹1 to ₹30, include:
However, the company clarified that there would be no revision in the cost of poly pack milk (full cream milk, toned milk, cow milk, and others) as it has always been exempt from GST.
Amul's Price Reductions
Amul has slashed prices on over 700 products, effective September 22, 2025. The price revisions cover a wide range of product categories:
Examples of specific price changes include a reduction in the price of a 100-gram pack of Amul Butter from ₹62 to ₹58 and a reduction in the price of a liter of Amul Ghee from ₹650 to ₹610. The Amul Paneer range will also get cheaper by 5%, with 1 kg of Amul Malai Paneer costing ₹15 less.
Impact and Expectations
These price reductions are expected to boost consumption, improve industry competitiveness, and lower costs for middle-class consumers. The simplified GST structure and reduced tax rates should also ease compliance and reduce disputes. It is anticipated that the increased demand for packaged food products will benefit farmers, while consumers will gain from affordable pricing and greater access to packaged dairy and processed foods.
