By: Bharat Daily Samachar Date: 23 Sep,2025

Milk Gets Costlier? Here’s How GST 2.0 Will Impact Mother Dairy & Amul Consumers

From September 22, 2025, a new pricing system under GST 2.0 will come into effect, directly influencing everyday essentials, including milk supplied by leading brands such as Mother Dairy and Amul. For millions of households across India, milk is not just a kitchen necessity but also a daily ritual. Any change in its price structure impacts both family budgets and the wider economy.

The announcement of revised GST 2.0 slabs on dairy products has therefore drawn attention from consumers, traders, and policymakers alike. While some see it as a step toward tax uniformity and transparency, others fear it could increase the financial burden on households already coping with inflation.

What is GST 2.0?

The Indian government rolled out GST 2.0 as a restructured version of the Goods and Services Tax. Its goal is to simplify taxation, eliminate loopholes, and ensure fair revenue distribution between the Centre and the States.

Under this system, various commodities, including essential food items, are placed under revised slabs. The idea is to reduce ambiguity in rates and bring greater clarity for both consumers and businesses. Milk, which was largely exempt or taxed minimally in the earlier system, now falls under new categories, depending on whether it is packed, processed, or flavored.

How Mother Dairy & Amul Are Affected

Both Amul and Mother Dairy are leading suppliers of packaged milk and dairy products in India. With GST 2.0, their retail price tags will change. Here’s how:

1. Loose or unpackaged milk: Will continue to remain exempt from GST, keeping it affordable for rural and semi-urban households.

2. Packaged milk (tetra packs, bottles, or pouches): A small GST component will now be applicable, raising the overall consumer price.

3. Flavored milk and value-added products (milkshakes, lactose-free variants, fortified milk): These fall under higher GST slabs, making them comparatively more expensive.

While the increase per liter may seem small—ranging from ₹2 to ₹4 depending on the category—the cumulative impact on monthly household expenses could be significant, especially for families consuming 3–5 liters per day.

Consumer Impact: Budgets Under Pressure

Milk is one of the rare items that touches nearly every Indian household, from metro cities to remote villages. Rising milk prices therefore have a domino effect:

• Households: With food inflation already high, families may need to adjust budgets, reducing spending on other groceries.

• Tea stalls & eateries: The cost of tea, coffee, and milk-based desserts could increase, affecting small vendors and roadside stalls.

• Students & working professionals: Many rely on packaged milk for convenience. Even small hikes could feel heavy on limited budgets.

• Nutrition concerns: Rising costs may push low-income households to reduce consumption, affecting children’s nutrition.

Industry Response: Why the Hike Was Inevitable

According to dairy sector insiders, the cost of production has risen sharply due to higher cattle feed prices, transport expenses, and electricity costs. For months, dairy cooperatives and private players have been demanding price adjustments to balance their operations.

GST 2.0 has provided a formal framework for revising rates. Industry experts argue that while consumers may initially feel the pinch, the move ensures stability and sustainability for dairy farmers.

Amul, known for its cooperative model, says the increase will ultimately benefit farmers by ensuring they receive fairer prices for milk procurement. Mother Dairy too has highlighted that the hike is necessary to maintain supply chains and ensure product quality.

Government’s Stand

Officials defending GST 2.0 argue that essential items like unpackaged fresh milk remain tax-free, protecting the most vulnerable households. The taxation of packaged and flavored milk is positioned as a way to standardize rates and increase revenue without hurting the poor.

The government also insists that GST 2.0 is designed to curb tax evasion in the food sector and ensure greater transparency. The expectation is that better compliance will ultimately lead to more funds for welfare schemes, some of which directly support nutrition and health.

Public Reactions: Mixed Opinions

As news of the revised rates spread, reactions poured in from across the country:

• Middle-class families expressed concern about mounting grocery bills, saying “milk should never be taxed heavily as it’s a necessity, not a luxury.”

• Small vendors and tea stall owners worried that the hike would eat into their profit margins, forcing them to either raise prices or cut quality.

• Farmers and dairy cooperatives welcomed the move, saying it could improve their income stability in the long run.

Long-Term Outlook

The big question is whether the GST 2.0 change will stabilize prices or trigger a chain reaction of inflation. If consumer demand weakens, dairy companies may need to reconsider their pricing strategy. At the same time, higher farmer earnings could strengthen the sector and improve milk supply consistency.

Some economists suggest that the transition period may be challenging, but over time, GST 2.0 could bring greater price uniformity across states. This may benefit large brands like Amul and Mother Dairy, who compete on a national scale.

Conclusion

The September 22 rollout of GST 2.0 marks an important turning point for India’s dairy industry. While loose milk remains unaffected, packaged and flavored varieties from Amul and Mother Dairy are set to cost more. For consumers, it may feel like another blow to household budgets, but for farmers and the industry, it could ensure long-term stability.

As India adapts to GST 2.0, one thing is clear: the price of a glass of milk is no longer just about nutrition—it’s also a story of economics, policy, and consumer resilience.