Mother Dairy Cuts Prices After GST 2.0 Reform

RR Team

3 months ago

In a major relief for consumers, Mother Dairy announced on Tuesday that it will slash prices across its dairy and food products following the implementation of the government’s GST 2.0 reforms. The revised rates, effective from September 22, will make everyday essentials like paneer, butter, cheese, ghee, and ice creams more affordable for households.

The company said it is fully passing on the benefits of reduced tax rates to consumers. Managing Director Manish Bandlish noted, “As a consumer-centric organisation, we are passing on 100% of the tax benefit to our patrons.”

Key Price Reductions

Some of the most popular Mother Dairy products will see significant price cuts:

Paneer (200 gm): Rs 95 → Rs 92
Butter (500 gm): Rs 305 → Rs 285
Cheese Cubes (180 gm): Rs 145 → Rs 135
Ghee (1 litre carton): Rs 675 → Rs 645
Ice Creams: Ice Candy Rs 10 → Rs 9; Kesar Pista Kulfi Rs 40 → Rs 30; Strawberry Crush Tub Rs 330 → Rs 300

UHT milk prices will also see a slight reduction, with the one-litre toned tetra pack dropping from Rs 77 to Rs 75. However, regular pouch milk remains unaffected as it has always been GST-exempt.

Safal Products Get Cheaper

Mother Dairy’s Safal brand of processed foods will also benefit from the tax reforms. Popular frozen and packaged items will now be available at lower rates:

Frozen French Fries (400 gm): Rs 100 → Rs 95
Aloo Tikki (400 gm): Rs 90 → Rs 85
Tomato Puree (200 gm): Rs 27 → Rs 25

These reductions ensure that consumers enjoy savings not only on dairy essentials but also on everyday cooking and snacking items.

GST 2.0: Key Reforms Driving Change

The GST 2.0 reforms introduced by the government have lowered or eliminated taxes on several essential food items. Key changes include:

UHT milk reduced from 5% GST to 0%
Paneer from 5% to 0%
Ghee, butter, cheese, milkshakes from 12% to 5%
Ice creams from 18% to 5%
Safal frozen foods, jams, pickles, packaged coconut water, tomato puree from 12% to 5%

Everyday pouch milk continues to remain exempt from GST, ensuring stability for millions of Indian households that rely on it as a staple.

Consumer Impact

Industry experts believe this move will boost consumption, provide relief amid rising food costs, and strengthen consumer confidence. With price-sensitive products such as paneer, butter, and ghee now more affordable, demand is expected to rise in urban and rural markets alike.

Mother Dairy’s price cut demonstrates how corporate entities can directly pass on tax benefits to customers, aligning with the government’s vision of consumer-friendly reforms.