In relief to consumers, Mother Dairy on Tuesday announced a cut of ₹2 per litre in milk prices, with the revised rates to come into effect from September 22. The move follows the recent overhaul of Goods and Services Tax (GST) rates, under which several essential food items have been exempted or brought under lower tax slabs.
The company said prices of other dairy products including paneer, butter, cheese and ice cream would also be reduced in line with the revised GST structure.
The GST Council earlier this month lowered taxes on a wide range of food products, cutting rates to 5 per cent and nil from the previous 12 and 18 per cent slabs. Items such as ultra-high temperature (UHT) milk, paneer, breads like paratha and chapati, khakhra and pizza bread were exempted from GST. Packaged foods including chocolates, sauces, juices and coffee now attract a lower 5 per cent levy.
Mother Dairy Managing Director Manish Bandlish welcomed the move, saying the benefits would be passed on to consumers. “We commend the Union Government’s decision to reduce GST rates on a wider range of dairy products. 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,” he said.
While Mother Dairy has announced a price cut, other players including Amul are yet to follow suit. Industry officials said leading brands are likely to align prices in the coming weeks.
(With agencies inputs)
