The GST exemption on packaged milk is expected to reduce retail prices of major milk brands, including Amul and Mother Dairy, by ₹3-4 per litre.
The sweeping reforms announced after the 56th GST Council meeting also includes removing the 5% goods and services tax (GST) on packaged milk.
The GST exemption will apply to all packaged milk products starting Sept 22, significantly reducing market prices and offering immediate relief to consumers across the country.
The exemption is expected to reduce retail prices of major milk brands, including Amul and Mother Dairy, by ₹3-4 per litre. Amul’s full-cream milk ‘Amul Gold’ and Mother Dairy’s full-cream milk currently sell for around ₹69 per litre and are likely to drop to ₹65-66 after the tax cut. Similar reductions are expected across toned milk, buffalo milk, and other packaged milk variants.
Relief for Consumers
Milk is one of the most widely consumed food products in India, with demand rising steadily in urban and rural areas. Analysts say a cut in milk prices could have a cascading effect on the prices of other dairy products like curd, paneer, and butter, which could boost demand in the festive season.
Expected Price Adjustments
Here are the likely price changes once GST is removed:
Product |
Current Price (₹/litre) |
|
Amul Gold (Full Cream) |
69 |
65–66 |
Amul Fresh (Toned) |
57 |
54–55 |
Amul Tea Special |
63 |
59–60 |
Buffalo Milk |
75 |
71–72 |
Cow Milk |
58 |
55–57 |
Mother Dairy Full Cream |
69 |
65–66 |
Mother Dairy Toned |
57 |
55–56 |
Mother Dairy Buffalo Milk |
74 |
71 |
Mother Dairy Cow Milk |
59 |
56–57 |
Industry executives said dairy companies are expected to pass on the full benefit of the tax exemption to consumers. The rate cut could also help stabilise demand in smaller towns, where price sensitivity is higher.
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