Mother Dairy Slashes Prices Across Dairy and Processed Foods, Passes 100% GST Benefit to Consumers from September 22
Mother Dairy Slashes Prices Across Dairy and Processed Foods, Passes 100% GST Benefit to Consumers from September 22
Mother Dairy, a wholly-owned subsidiary of the National Dairy Development Board (NDDB), has announced a major price reduction across its dairy and Safal processed food portfolio. The revised prices, effective September 22, 2025, come in response to the Indian government’s recent GST reforms, with the company passing on 100% of the tax benefits directly to consumers.
Key GST-Driven Price Reductions
Under the revised GST structure, Mother Dairy products now fall under either the exempted/nil tax category or the lowest GST slab of 5%.
- Dairy Products:
- UHT Milk (Tetra Pack): 5% → 0%
- Paneer: 5% → 0%
- Ghee, Butter, Cheese, Milkshakes: 12% → 5%
- Ice Creams: 18% → 5%
- Pouch Milk (Full Cream, Toned, Cow Milk): Already exempt; no change
- Safal Processed Foods:
- Frozen Snacks, Jams, Pickles, Coconut Water, Tomato Puree: 12% → 5%
Sample Price Cuts for Consumers
- UHT Milk (1L): ₹77 → ₹75
- Paneer (200g): ₹95 → ₹92
- Butter (500g): ₹305 → ₹285
- Cheese Cubes (180g): ₹145 → ₹135
- Ghee (1L): ₹675 → ₹645
- Ice Creams: Ice Candy ₹10 → ₹9, Kesar Pista Kulfi ₹40 → ₹30
- Safal French Fries (400g): ₹100 → ₹95, Aloo Tikki (400g): ₹90 → ₹85
Consumer and Farmer Benefits
Manish Bandlish, Managing Director of Mother Dairy, emphasized that the GST-driven cuts will make quality packaged dairy and processed foods more affordable, boosting demand and strengthening the value chain.
“The GST reduction is a progressive step that will accelerate adoption of safe, high-quality packaged offerings. As a consumer-centric brand, we are passing on 100% of the benefit to our patrons,” said Bandlish.
The move is expected to encourage wider adoption of safe packaged dairy products while simultaneously supporting farmers through higher demand for raw milk and agricultural produce.
Strengthening the Food Value Chain
By reducing prices, Mother Dairy is not only offering affordability to consumers but also driving growth across India’s dairy and processed food ecosystem. The decision aligns with the government’s reforms aimed at boosting consumption, supporting farmers, and promoting healthier dietary options.
