Milky Mist Dairy Food Limited has announced a price reduction across more than 300 of its dairy products, passing on the benefits of the revised Goods and Services Tax (GST) rates to consumers. Effective September 22, 2025, the company has adjusted the Maximum Retail Prices (MRPs) to reflect the new GST rates, making dairy staples like cheese, butter, ghee, and condensed milk more affordable.

The GST Council's recent tax cuts, approved on September 3, 2025, have led to significant changes in the prices of essential food items. Under the new tax regime, the GST on paneer has been reduced from 5% to 0%. Similarly, the GST rate on other popular dairy products like cheese, butter, ghee, and condensed milk has been reduced from 12% to 5%. Ice cream and chocolate have also become more accessible, with the GST rate dropping from 18% to 5%. UHT milk will also see a price reduction due to a GST rate cut from 5% to nil.

While Milky Mist is passing on the GST benefits to consumers in most categories, the company is absorbing a small portion of the benefit (approximately 1–2%) on certain products like paneer. This is to offset input material costs and ensure consistent product quality and availability for its retail partners.

In addition to reducing prices for consumers, Milky Mist is also supporting its network of dairy farmers. The company increased milk procurement prices by up to 3.5% starting September 1st and followed that with an additional 3.5% increase after the GST revision was implemented. Milky Mist is absorbing the cost of these increases, which it views as an investment in a stable and sustainable supply chain. This commitment to farmer livelihoods helps secure a reliable flow of products for retailers.

K Rathnam, Whole-time Director and Chief Executive Officer at Milky Mist, stated that the company is focused on its farmers and consumers. By passing on the GST benefits and increasing procurement prices, Milky Mist aims to ensure equilibrium in the dairy ecosystem and foster trust and long-term partnerships.

The GST 2.0 simplifies the earlier four-tier structure to two broad slabs: 5% for essentials and daily-use goods such as food grains, medicines, basic dairy items, and educational products; and 18% for most standard goods and services, including manufacturing, transport, and consumer services. The government expects that GST 2.0 will widen India's tax base, make compliance easier, increase disposable income, and spur consumer spending. Some experts suggest strong monitoring mechanisms are required to ensure manufacturers and retailers pass on tax savings to consumers.

The price reductions from Milky Mist and other dairy companies are expected to benefit middle-class families, with consumers in Delhi noting that the prices of ghee, butter, milk, and ice cream have gone down. Other dairy companies like Nandini have also cut prices on milk products following the GST 2.0 revisions.