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Sweet Relief for Consumers! GST Cut Sparks Price Reductions on Milk and Dairy Favorites

  • Nishadil
  • September 22, 2025
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  • 1 minutes read
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Sweet Relief for Consumers! GST Cut Sparks Price Reductions on Milk and Dairy Favorites

In a delightful development for households across the nation, major dairy giants Amul and Mother Dairy have announced significant price cuts on milk and various dairy products. This much-awaited relief comes on the heels of the 53rd Goods and Services Tax (GST) Council meeting, which brought a pivotal decision to exempt all services provided by dairy firms, particularly those crucial to the milk processing sector.

The impact of this policy change is already being felt by consumers.

Amul, one of India's most beloved dairy brands, has slashed the price of its buffalo milk by a notable Rs 2 per liter. Beyond just milk, Amul has extended these savings to popular items like lassi, curd, and buttermilk, making everyday essentials more affordable.

Similarly, Mother Dairy, a dominant player in the Delhi-NCR region, has reduced the price of its cow milk by Re 1 per liter.

These adjustments are a direct benefit flowing from the GST Council's proactive step to ease the tax burden on the dairy industry, specifically addressing services related to skimmed milk powder – a key component in the broader milk pricing structure.

The decision by the GST Council, taken during its recent meeting in New Delhi, specifically highlighted the exemption of services offered by dairy units.

This includes critical processing activities that contribute to the final price of milk and milk products. The dairy industry had long advocated for such relief, particularly concerning the taxation on skimmed milk powder, recognizing its direct influence on consumer prices and the overall health of the sector.

This move is a win-win: it provides tangible financial relief to consumers grappling with household budgets and significantly bolsters the dairy industry.

By reducing input costs through GST exemptions, dairy firms can pass on these savings, fostering greater demand and supporting farmers. The long-standing demand from dairy players for this exemption underscores its importance for the sector's sustainability and growth.

Ultimately, this strategic GST cut promises to make daily dairy essentials more accessible and affordable, bringing a much-needed smile to millions of consumers and injecting renewed vigor into India's vibrant dairy sector.

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