GST CUTS STIR DAIRY BOOM

Major dairy players like Amul, Heritage Foods, and Milky Mist have slashed prices after the GST rate cut, making milk and milk products more affordable this festive season.

- BY VAISHNAVI GUPTA

In a landmark move that could reshape India's Rs 16 lakh crore dairy industry, the 56th GST Council has approved a rationalization of GST rates on milk and milk products — a decision that has already triggered swift and consumer-centric responses from some of the country's biggest dairy players. Under the new structure, effective September 22, 2025, most dairy items either fall under the exempted category or are now taxed at just 5 percent.

Within days of the announcement, leading dairy brands — including Amul, Heritage Foods, Milky Mist, and Mother Dairy — revised their prices to pass on the benefits directly to consumers. In doing so, they have not only reinforced their consumer-first positioning but also signaled how swiftly India's organized dairy sector can adapt to regulatory reform while balancing farmer welfare and market competitiveness.

Industry Rallies around a Common Goal

Few policy decisions have elicited such a uniform, positive response across the dairy ecosystem. Price revisions across categories have been significant. Ghee, butter, and cheese have seen reductions of around Rs 50 per kg, paneer prices have come down by Rs 25 per kg, and UHT milk by Rs 3 per litre. Even indulgence items such as ice cream and chocolate are now more accessible, with some brands cutting MRPs by Rs 20–35 per pack.