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Amul Confirms No Change in Packaged Milk Prices Amid GST Reforms

Gyanhigyan english | September 11, 2025 7:39 PM CST

Impact of GST Changes on Milk Prices

Amul, a prominent dairy brand in India, has clarified that the prices of packaged milk will remain unchanged despite the upcoming Goods and Services Tax (GST) modifications set to take effect on September 22. This announcement follows the Next-Gen GST Reforms revealed on September 4, which had raised concerns about potential price adjustments in milk products. The company emphasized that pouch milk will not see any price alterations as it is already subject to a zero percent GST.

Clarification from GCMMF

Jayen Mehta, the Managing Director of the Gujarat Co-operative Milk Marketing Federation (GCMMF), which oversees Amul's marketing, stated, "There are no proposed changes to the prices of fresh pouch milk since the GST remains unchanged at zero percent." Some reports had suggested that pouch milk prices might decrease by Rs 3 to Rs 4 under the new GST framework, but Mehta dismissed these claims as "inaccurate," reiterating that pouch milk has consistently been exempt from GST.

Changes in UHT Milk Pricing

The new tax structure will only affect UHT (Ultra-High Temperature) milk, which will see a price reduction due to a GST rate cut from 5 percent to nil. Mehta explained, "Only long-life UHT milk prices will decrease starting September 22 as a result of the GST reduction from 5 percent to nil." UHT processing involves heating milk to a minimum of 135°C (275°F) for a brief period.

Highlights of Next-Gen GST Reforms

The GST has been streamlined into a two-slab system (5% and 18%). The reforms have lowered taxes on essential household items such as soaps, toothpaste, and Indian breads to either 5% or nil, enhancing affordability. Additionally, life-saving medications have seen a tax reduction from 12% to either nil or 5%, making healthcare more accessible. Taxes on two-wheelers, small cars, televisions, air conditioners, and cement have been reduced from 28% to 18%, providing relief to the middle class. Meanwhile, tobacco, pan masala, aerated beverages, and luxury items are taxed at 40%.