Will Amul Milk Prices Come Down After GST Rate Cut? Here's What MD Jayen Mehta Says
The GST Council last week removed the 5% tax on packaged milk under the revised structure.
The cost of packaged milk is expected to drop in the coming days following the rationalisation of the Goods and Services Tax (GST). The GST Council, on Sept. 3, approved a rationalisation of GST rates on milk and milk products, bringing the tax rates to nil for most such items.
The GST Council removed the 5% tax on packaged milk under the revised structure. It paves the way for reductions in retail prices from leading brands such as Amul and Mother Dairy once the exemption is implemented. The new GST rates will come into effect from Sept. 22.
However, Amul has clarified that prices of its milk pouches will remain unchanged even under GST 2.0.
As per an ANI report, Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets the Amul products, said, “There is no change proposed in prices of fresh pouch milk as there is no reduction in GST. It has always been zero percent GST on pouch milk.”
Earlier, media reports suggested that the cost of packaged milk would drop in the coming days following the rationalisation of the Goods and Services Tax (GST). One of the major outcomes of the latest GST Council meeting was that a 5% GST will no longer apply to packaged milk.
Mehta clarified that the change only applies to Ultra-High Temperature (UHT) milk.
"Only long-life UHT milk prices will be reduced with effect from Sept. 22 due to a reduction in GST from 5% to Nil," he added.
By lifting the 5% tax on packaged milk, the government aims to help families cope with the impact of inflation and guarantee access to quality milk at lower prices. This measure is expected to ease the financial burden on consumers and support household budgets across the country.
Currently, Amul’s ‘Amul Gold’ full cream milk is priced at Rs 69 per litre, with toned milk available for about Rs 57 per litre. Likewise, Mother Dairy offers its full cream milk at Rs 69 and toned milk at Rs 57 per litre. Prices for buffalo and cow milk generally fall within the range of Rs 50 to Rs 75 per litre.
With the GST exemption in place, milk prices were reportedly likely to be reduced by approximately Rs 3 to 4 per litre. This means Amul Gold could be available for about Rs 65 to 66 per litre. Mother Dairy’s full cream milk is expected to see a similar price cut. Toned milk and buffalo milk prices are also expected to decline by a similar margin.
