Mother Dairy, one of India’s largest dairy brands, announced on Thursday that it will pass on the benefits of the recent Goods and Services Tax (GST) reduction on dairy products to its customers. The assurance follows the GST Council’s decision to lower tax rates on a wide basket of value-added dairy categories.
Mother Dairy, which posted revenues of ₹17,500 crore in the last financial year, said the rate cut covers paneer, cheese, butter, ghee, UHT milk, milk-based beverages and ice creams. The company said the move would not only make packaged dairy products more affordable but also expand their reach across households.
“We commend the Union Government’s decision to reduce GST rates on dairy items. This will significantly improve affordability and accessibility for consumers, especially in packaged categories that are witnessing strong growth,” said Manish Bandlish, Managing Director of Mother Dairy.
He added that the reform will strengthen consumer trust in safe, high-quality packaged products and encourage families to opt for value-added dairy choices. “We are fully committed to ensuring that the benefits of this reduction are effectively transferred to consumers,” Bandlish noted.
Industry analysts believe the reduction in GST will stimulate higher demand in organized dairy segments and expand market opportunities for farmers supplying to these value chains. Packaged dairy categories such as cheese, UHT milk and milk-based beverages have seen rapid growth in recent years, driven by urban consumption patterns and rising disposable incomes.
The GST relief comes at a time when consumer spending is under pressure from food inflation, and the move is expected to support household budgets while boosting demand for branded dairy products.
