Nandini joins Amul and Mother Dairy in reducing milk product prices by ₹40-60 per kg following tax reform.
India’s leading dairy cooperatives have implemented significant price reductions across essential milk products following the government’s GST 2.0 restructuring that took effect on September 22, 2025. Nandini, operated by Karnataka Milk Federation (KMF), has joined industry giants Amul and Mother Dairy in passing the full benefit of reduced Goods and Services Tax rates directly to consumers, marking a watershed moment for the nation’s ₹19 lakh crore dairy sector that employs over 8 crore rural farmers across the country.
The Government of India’s strategic tax reduction on essential dairy products has created immediate consumer savings, with GST rates slashed from 12-18% to just 5% on critical items including ghee, paneer, cheese, ice creams, and dairy spreads. Ultra-High Temperature (UHT) milk, previously taxed at 5%, now carries no GST burden, while pre-packaged and labeled paneer has similarly moved to nil taxation, demonstrating the administration’s commitment to making nutritious dairy products more affordable for Indian households.
Karnataka Milk Federation’s Nandini brand has implemented substantial price cuts across its product portfolio, with 1000ml ghee pouches reduced from ₹650 to ₹610, unsalted butter (500gm) dropping from ₹305 to ₹286, and paneer (1000gm) decreasing from ₹425 to ₹408. Additional reductions include Goodlife milk falling from ₹70 to ₹68 per liter, processed cheese declining from ₹530 to ₹497 per kilogram, and mozzarella diced cheese dropping from ₹480 to ₹450 per kilogram, creating tangible household savings.
Amul has announced comprehensive price revisions across over 700 products, with butter (100gm) reduced to ₹58 from ₹62, ghee rates cut by ₹40 to ₹610 per liter, processed cheese blocks (1kg) decreased by ₹30 to ₹545 per kilogram, and frozen paneer (200gm) priced at ₹95 instead of ₹99. Mother Dairy has similarly implemented price reductions starting September 22, while some regional players like Tamil Nadu’s Aavin have reportedly maintained previous pricing structures despite the tax benefits.
The dairy price reduction initiative extends beyond basic milk products to include value-added categories such as ice creams, with Nandini’s vanilla tubs (1000ml) dropping from ₹200 to ₹178, savouries (180gm) reduced from ₹60 to ₹56, and muffins (150gm) decreased from ₹50 to ₹45. This comprehensive approach reflects the dairy industry’s commitment to consumer welfare while maintaining competitive positioning in India’s rapidly evolving food processing landscape, where affordability and nutrition access remain critical policy priorities.
Source: Business Standard – Prices of several ‘Nandini’ milk products go down with new GST rate cut
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