GST cuts bring relief as Mother Dairy Prices fall on staples and festive treats across India.
New Delhi: Mother Dairy, one of India’s leading dairy cooperatives, has announced significant price reductions across its product range, effective September 22, 2025. The price cuts, aligning with the GST Council’s recent tax rationalization, will see the full benefit of reduced GST rates—0% on UHT milk, paneer, and milk-based beverages, and 5% on ghee, butter, cheese, milkshakes, and ice creams—passed directly to consumers. This initiative promises savings of ₹2 to ₹30 per unit on essentials and indulgences alike, including Cassatta ice creams, Safal frozen French fries, tomato puree, and pickles.
The GST Council’s decision on September 4, 2025, to streamline India’s indirect tax structure into two primary slabs—5% and 28%—has brought significant relief to the food sector. Previously taxed at 5%, UHT milk, paneer, and certain milk-based drinks are now exempt, while ghee, butter, cheese, milkshakes, and ice creams have dropped from 12% to 5% GST. Processed foods like frozen vegetables and condiments also benefit, addressing food inflation, which has hovered around 6-7% in recent months.
Key price reductions include UHT toned milk (1L) dropping from ₹77 to ₹75, paneer (200g) from ₹95 to ₹92, butter (500g) from ₹305 to ₹285, and ghee (1L) from ₹675 to ₹645. Cheese cubes (180g) will now cost ₹135 (down from ₹145), while milkshakes (180ml) and select ice creams see up to 5% reductions. Safal’s frozen French fries and tomato puree will also be cheaper, with savings varying by pack size. These changes will be implemented across Mother Dairy’s 2,000+ booths, 300+ Safal outlets, major supermarkets like Reliance Retail, and e-commerce platforms like BigBasket.
Mother Dairy, with an annual turnover exceeding ₹17,500 crore, commands a 20% share of Delhi-NCR’s liquid milk market and supports over 10,000 farmers. As Diwali nears, these savings are poised to brighten festive shopping, offering tangible relief amid economic pressures. Consumers can check updated prices at retail points or Mother Dairy’s website starting September 22.
