Mother Dairy revises product prices after GST rate cuts

The National Dairy Development Board's wholly owned subsidiary, Mother Dairy, announced the revision of prices of various dairy and processed food products on Tuesday, September 16.

The rates of select range of products have been reduced following the changes in the tax slabs announced under the new Goods and Services Tax (GST) reforms, the company said in a press note.

Th revised rates of the products will come into effect from September 22.

In a GST Council meeting on September 3, the government approved the reduction of GST rates across various range of sectors and industries.

The government rationalised the four-tiered tax structure into two-slab structure with a standard rate of 18% and a merit rate of 5%. A special 40% de-merit rate remains in place for sin goods and services.

GST rates affecting Mother Dairy products

With the government's decision to reduce the tax slabs and move the dairy products from 18% and 12% rates to lowest 5% slab, the entire portfolio of the company now falls under either the nil or 5% category.

"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," Manish Bandlish, Mother Dairy's managing director said in a statement.

"Consumers will gain from affordable pricing and greater access to packaged dairy and processed foods," he added.

The pouch milk has always been exempted from the GST rates and will be continued the same way. Hence, it will not witness any changes in the MRP.

With the move, the dairy products, ice creams and processed food items under the Safal brand will see a price reduction.

The price reduction across Mother Dairy's product range will be as followed:

Product Category	Old GST	New GST
Mother Dairy – Value-Added Dairy Products
UHT Milk (Tetra Pack)	5%	0%
Paneer	5%	0%
Ghee	12%	5%
Butter	12%	5%
Cheese	12%	5%
Milkshakes	12%	5%
Ice Creams	18%	5%
Safal – Value-Added Horticulture Products
Frozen Snacks	12%	5%
Jam	12%	5%
Pickles	12%	5%
Packaged Coconut Water	12%	5%
Tomato Puree	12%	5%