With a strong objective to benefit millions of consumers, the government has decided to exempt packaged milk from the 5% Goods and Services Tax (GST), leading to a reduction in milk prices from September 22 onwards. Popular brands such as Amul and Mother Dairy are expected to lower their prices by ₹3 to ₹4 per litre following the tax exemption.
The GST Council’s decision aims to ease the financial burden on households amid rising inflation, making an essential commodity like milk more affordable for Indian families.
While consumers enjoy lower prices, dairy farmers will continue to receive fair payment for their produce. Recently, the Indore Cooperative Milk Union increased the procurement price for farmers by over 2%, raising it from ₹820 to ₹840 per kilogram of milk fat, effective from September 11, 2025. This move is aimed at supporting farmers’ livelihoods and promoting sustainable dairy farming practices.
The GST exemption on packaged milk will directly reduce monthly grocery bills for households, ensuring better access to this nutritional staple. The price revisions are expected to take effect immediately from September 22, benefiting consumers across urban and rural areas alike.
This development underscores the government’s commitment to making essential commodities more affordable and accessible for every Indian household.
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