GST 2.0 impact: Will pouch milk prices come down? Here’s what Amul said

Representative image (Picture credit: AP)

Amul has clarified that there will be no change in the price of packaged pouch milk after September 22, even as GST 2.0 reforms come into effect. The dairy major said pouch milk has always attracted zero per cent GST and hence remains unaffected by the recent tax changes.Responding to a query from news agency ANI, Jayen Mehta, managing director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets 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 per cent GST on pouch milk.”The clarification comes after media reports suggested a possible reduction of Rs 3 to Rs 4 per litre in pouch milk prices. Mehta termed such reports inaccurate, noting that only long-life UHT milk will become cheaper from September 22, following a GST rate cut from 5 per cent to nil. “Only long-life UHT milk prices will be reduced with effect from September 22 due to reduction in GST from 5 per cent to Nil,” he said.Finance minister Nirmala Sitharaman had announced the GST rationalisation on September 3, describing it as a “Next-Gen GST Reform” aimed at easing living costs and boosting consumption. The 56th GST Council meeting decided to merge the 12 per cent and 28 per cent slabs into two rates, 5 per cent and 18 per cent, seen as a major Diwali relief.Dairy cooperatives, including Amul and Mother Dairy, have welcomed the broader rate cuts on other milk products such as paneer, cheese, ghee, butter, beverages, and ice creams, saying the reform will spur consumption and benefit millions of farmers. Mehta thanked the government on behalf of 36 lakh farmer families in Gujarat and over 10 crore linked to the dairy industry, calling it a landmark step.Industry leaders said the move will strengthen consumer demand, improve farm incomes, and expand market opportunities for the dairy sector.The ministry of cooperation also noted that the reform directly benefits over 10 crore dairy farmers and complements wider efforts to make agriculture and food processing more affordable and competitive.