Mother Dairy Slashes Prices of Milk, Paneer, Butter, and Ghee Following GST Rate Cut

Mother Dairy lowered prices across its milk, dairy, and processed foods to share the advantage of a recent reduction in GST rates with consumers.

From 22 September 2025, one-litre ultra high-temperature (UHT) milk will be priced at Rs. 75 compared to Rs. 77, the National Dairy Development Board's unit stated. Its entire product range now incurs a GST of 5% or nil. Pouch milk continues to be GST-exempted.

Other Changed Prices:

• Milkshakes: Rs. 28 instead of Rs.30 earlier
• Paneer (200 gm): Rs.192 instead of Rs.95 earlier
• Butter (100 gm): Rs.58 instead of Rs. 62 earlier
• Cow Ghee (1 litre): Rs.720 instead of Rs.750 earlier
• Ice creams: reduced by up to Rs. 5/100 ml and Rs. 30/litre

For Safal items like frozen snacks, jams, pickles, coconut water, and tomato puree, GST has been lowered to 5% from 12%, resulting in price
changes:

• Frozen French fries (400 gm): Rs. 95 instead of Rs. 100 earlier
• Frozen aloo tikki (400 gm): Rs. 85 as against Rs.90 previously
• Frozen nuggets (300 gm): Rs.110 as against Rs. 105 previously
• Coconut water (200 ml): Rs. 50 as against Rs. 55 previously
• Mixed fruit jam (500 gm): Rs. 165 as against Rs. 180 previously

Manish Bandlish, managing director, Mother Dairy, stated, "GST reforms are a forward-thinking step that will go a long way in increasing consumption and speeding up the take-off of safe, high-quality packaged products. As a consumer-oriented organisation, we are transferring 100% of the benefit, with effect from 22 September."

The company observed that the reduction in GST will benefit the overall supply chain, from farm to table, as consumers will directly gain from reduced prices and usage of packaged products will be more widespread.