Will Milk Prices Really Drop from September 22? Here’s What Amul & Mother Dairy Say About the GST Change

Published on: September 11, 2025 at 18:14

With GST 2.0 reforms set to roll out on September 22, 2025, there’s a lot of chatter around how this will affect everyday essentials — and milk is right at the top of that list. For millions of households, milk isn’t just a drink; it’s a part of daily life, whether it’s for morning chai, kids’ breakfast, or evening coffee. Naturally, when the government announced changes in GST rates, the first thought in many minds was: Will my milk packet get cheaper?

This question has led to a mix of excitement and confusion. Many believe that GST cuts automatically mean lower prices across all milk varieties. But the reality, as explained by Amul and Mother Dairy, is a little more nuanced. Here’s a detailed breakdown of what’s changing, what isn’t, and what you can expect in your kitchen from September 22 onward.

GST 2.0 – What It Really Means for Milk Products

The Goods and Services Tax (GST) 2.0 reforms aim to simplify tax structures and make essentials more affordable. For the dairy sector, the most notable change is:

• GST on UHT (Ultra-High Temperature) or Long-Life Milk is being reduced from 5% to 0%.

• Fresh pouch milk remains GST-free, as it always has been.

This means consumers who buy UHT milk — the kind that comes in Tetra Pak cartons with a longer shelf life — will see a direct benefit in the form of lower prices, as the 5% tax is completely removed.

However, the majority of Indian households consume fresh pouch milk, which was already exempt from GST. So, there will be no new reduction in prices for toned, double-toned, or full-cream milk packets. This is a key clarification, as many social media posts have created the impression that all milk will get cheaper — which is not the case.

Also Read: GST 2.0 Unveiled: Two‑Slab Tax for Essentials, 40% for ‘Sin’ Goods—What’s Really Changing on September 22?

What Amul & Mother Dairy Have Officially Said

Both Amul (GCMMF) and Mother Dairy have addressed consumer queries and media reports on this topic.

• Amul’s Statement: Its Managing Director confirmed that pouch milk prices will not be reduced because they are already GST-free. The only category likely to see price correction is UHT milk, as there is a direct GST cut from 5% to 0%.

• Mother Dairy’s Position: Mother Dairy has given a similar clarification — prices for regular milk variants like full cream, toned, and cow milk remain unchanged. The benefit is expected only for UHT milk users, though the exact revised MRPs will be announced after September 22.

This makes it clear that there is no widespread price cut on daily milk packets. Instead, the benefit is limited to a specific category of milk, which is more popular in cities, among working professionals, hostels, and those who need milk with a longer shelf life.

What Consumers Should Watch Out For After September 22

As a consumer, here’s what you should do to make the most of this GST change:

1. Check the Labels Carefully – If you buy UHT milk, look for price revisions or new MRPs after September 22.

2. Compare Price & Value – If UHT milk becomes slightly cheaper, it might be a good option if you value longer shelf life or need to stock up for a few days.

3. Don’t Expect Big Savings on Pouch Milk – If you buy fresh milk daily, don’t be disappointed if prices stay exactly the same. They were already exempt from GST, so you’re already getting a tax benefit.

4. Look Out for Offers – Sometimes brands introduce festive discounts or promotional offers around tax changes, so watch for special price drops in supermarkets and online grocery apps.

Also Read: Honda Drops Prices by up to ₹18,887 After GST Cut — Which Bikes Got the Big Breaks?

Like many others, I was excited to hear that milk might get cheaper. As someone who buys fresh pouch milk every morning, I was secretly hoping to save a few rupees every month. But after looking into the details, I realized that my daily milk routine isn’t going to change — and that’s okay.

What I like about this GST cut is that it helps UHT milk buyers, who often pay more per litre because of packaging and processing costs. This move makes it a little more affordable for students, office-goers, and families in areas where fresh milk delivery isn’t always possible.

In the end, GST 2.0 is a step toward rationalizing taxes on essential goods, which is a good sign for consumers. Even if you don’t save immediately, knowing that your fresh milk is already tax-free should feel reassuring. And if you ever switch to UHT milk, you’ll notice the difference in price after September 22.