Mother Dairy price cut: Consumers to get full GST benefit; revised rates effective from September 22

NEW DELHI: Mother Dairy on Tuesday announced that it will reduce prices across most of its value-added dairy and processed food products from September 22 after deciding to pass on 100 per cent of the Goods and Services Tax (GST) benefits to consumers.

The company said that paneer (200 gm pack) will now cost Rs 92 instead of Rs 95, ghee carton pack (1 litre) will fall from Rs 675 to Rs 645, and 100 gm butter will be priced at Rs 58 against Rs 62 earlier. Prices of other products, including Cassatta ice cream, pickles, tomato puree and Safal frozen French fries, will also come down.



"The recent GST reduction across a wide range of dairy and processed food products represents a progressive step that will significantly boost consumption and accelerate the adoption of safe, high-quality packaged offerings. As a consumer-centric organisation, we are passing on 100 per cent of the tax benefit to our patrons, effective September 22, 2025, keeping up with the spirit of this reform," Manish Bandlish, Managing Director, Mother Dairy told news agency PTI.

The company, a wholly-owned subsidiary of the National Dairy Development Board (NDDB), noted that its entire portfolio now falls under either the exempted/nil category or the lowest 5 per cent slab.

"We are confident this measure will positively impact the entire value chain: farmers will benefit from increased demand for packaged food products, further supported by GST reductions on farm equipment and allied components, while consumers will gain from affordable pricing and greater access to packaged dairy and processed foods," Bandlish added.

The GST Council, as part of recent reforms, has rationalised the structure by retaining only two slabs, 5 per cent and 28 per cent, instead of four earlier. Consequently, tax rates on over 350 items will be reduced, effective September 22.

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