New Delhi: Consumers can look forward to cheaper dairy products as Mother Dairy has announced a price reduction of Rs 2 per litre on milk. This move comes ahead of the implementation of the revamped Goods and Services Tax (GST) rates, set to take effect around September 22.

The price cuts will extend beyond milk to include a range of dairy items such as cottage cheese, butter, cheese, and ice creams, following the GST rate revisions for food products.

The government recently overhauled the GST structure, slashing tax rates on essential food and stationery items to 5 per cent and even nil, down from previous slabs of 12 and 18 per cent. Several staple food items, including ultra-high temperature (UHT) milk, paneer, breads like paratha and chapati, and other packaged foods like chocolates, snacks, sauces, and beverages, have been either exempted or subjected to reduced GST, aimed at boosting consumption and supporting industry growth.

Mother Dairy had earlier assured customers that the benefits of these tax cuts would be passed on. Reacting to the GST Council’s September 4 decision, Mother Dairy Managing Director Manish Bandlish said, “We commend the Union Government's decision to reduce GST rates on a wider range of dairy products, including paneer, cheese, ghee, butter, UHT milk, milk-based beverages, and ice creams.”

He added, “By lowering the tax slabs, the move will encourage wider adoption of packaged, value-added dairy products, strengthen consumer preference for safe and quality offerings, and enable more families to enjoy wholesome dairy goodness at better value.”

While Mother Dairy has announced its price cut, Amul has yet to declare any price changes. However, industry experts expect other leading brands to follow Mother Dairy’s lead in passing on the benefits to consumers.