Mother Dairy Cuts Prices Across Milk, Butter, Ice Creams and Safal Products After GST Reform

Mother Dairy has announced a major price reduction on several of its popular products, including tetra pack milk, butter, ice creams, and Safal brand processed foods. The move comes in response to the revised Goods and Services Tax (GST) regime, set to take effect from September 22, 2025, and is aimed at passing "100 per cent of the tax benefit" directly to consumers.

"With the new GST structure, our entire product portfolio now falls under either exempted/nil tax or the lowest 5% slab. This will benefit farmers through higher demand for packaged foods and help consumers with affordable access to quality dairy and processed items," said Manish Bandlish, Managing Director of Mother Dairy.

Price Reductions on Dairy Products

1. Toned Milk (1L tetra pack): Reduced from ₹77 to ₹75 (no GST).
2. Paneer (400g): Reduced from ₹180 to ₹174.
3. Butter (100g pack): Reduced from ₹62 to ₹58 (GST down from 12% to 5%).
4. Cheese Slices (200g): Reduced from ₹170 to ₹160.
5. Cow Ghee (1L pouch/tin): Reduced by ₹30.
6. Ice Creams Get Cheaper
7. Cassatta Ice Cream: Reduced from ₹70 to ₹60.
8. Shahi Meva Malai Tub (1L): Reduced from ₹330 to ₹300.

Safal Products See Price Cuts

Popular Safal offerings such as frozen French fries, nuggets, pickles, tomato puree, and jams will now be ₹5-₹15 cheaper, making them more accessible to households.

No Change in Poly Pack Milk

Everyday milk sold in poly packs-such as full cream and cow milk-remains GST-exempt, so their prices will stay unchanged.

Wider Impact

The initiative is expected to stimulate consumption of packaged dairy and food products while supporting farmers with improved demand. By aligning with the GST reforms, Mother Dairy aims to strengthen both ends of the value chain-producers and consumers-while promoting safe, high-quality packaged foods.