Mother Dairy to Pass on 100% GST Benefit, Prices on Most Products to Decline from Sep 22

Mother Dairy on Tuesday said it will pass on 100% GST reduction benefits to consumers and most of its products including value-added dairy products and processed foods (under Safal brand) will become cheaper with effect from September 22.

Mother Dairy, a wholly-owned subsidiary of National Dairy Development Board (NDDB), said that prices of paneer (200 gms) will come down from ₹95 to ₹92, Ghee Carton Pack (1 litre) from ₹675 to ₹645, and butter 100 gm from ₹62 to ₹58.

Similarly, the prices of various other products including Cassatta Ice Cream, pickles, tomato puree and Safal Frozen French Fries too will 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% 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, said.

Mother Dairy's entire portfolio now falls either under the exempted/nil or the lowest slab of 5%.

"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," he added.

As part of the reform process, the GST Council has introduced only 5 and 28% slabs instead four earlier. As a result the GST rate of over 350 items will come down. These new rates will be effective from September 22.