Mother Dairy to slash paneer, butter & certain milk prices as company passes on GST benefits. Check new prices

In good news for consumers, Mother Dairy on Tuesday said it is slashing prices across its range of dairy and food products after the government’s big Goods and Services Tax (GST) 2.0 revamp. The reduced prices will come into effect from September 22, the brand said.

Key dairy products such as UHT milk, paneer, ghee, butter, cheese, and milkshakes have seen price reductions, reflecting cuts in GST from 5–18% to 0–5% depending on the product. For instance, 1-litre UHT milk (Tetra Pack) is now Rs 75, down from Rs 77, while 500 gm butter drops from Rs 305 to Rs 285.

Similarly, Mother Dairy’s ice creams and Safal processed foods have also become more affordable. Ice cream items like Choco Vanilla Cone and Kesar Pista Kulfi are cheaper by Rs 5–10, while Safal products such as frozen French fries, Aloo Tikki, and packaged coconut water have reduced prices ranging from Rs 5 to Rs 15.


Notably, pouch Milk – the everyday poly pack milk (Full Cream Milk, Toned Milk, Cow Milk, etc.) – has always been exempted from GST and continues to be so, with no implications on its MRP.

Manish Bandlish, Managing Director, Mother Dairy, said, 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.

"We are passing on 100% of the tax benefit to our patrons, effective September 22, 2025, keeping up with the spirit of this reform.”

He further said, with this change, the company's entire portfolio now falls either under the exempted/nil or the lowest slab of 5%.

New prices of Mother Dairy products

Product Category	SKU	Old MRP (In Rs.)	New MRP (In Rs.)
UHT Milk (Toned; Tetra Pack)	1 litre	77	75
UHT Milk (Double Toned; Pouch)	450 ml	33	32
Milkshakes (Strawberry, Chocolate, Mango, Rabri)	180 ml	30	28
Paneer	200 gm	95	92
	400 gm	180	174
Malai Paneer	200 gm	100	97
Butter	500 gm	305	285
	100 gm	62	58
Cheese Cubes	180 gm	145	135
Cheese Slices	200 gm	170	160
	480 gm	405	380
	780 gm	480	450
Cheese Block	200 gm	150	140
Cheese Spread (Creamy Plain, Piri Piri, Garlic & Herbs)	180 gm	120	110
Diced Mozzarella Cheese	1000 gm	610	575
Ghee Carton Pack	1 litre	675	645
	500 ml	345	330
Ghee Tin	1 litre	750	720
Ghee Pouch	1 litre	675	645
Cow Ghee Pouch	1 litre	685	655
	500 ml	350	335
Cow Ghee Jar	1 litre	750	720
	500 ml	380	365
	200 ml	190	184
Cow Ghee Carton Pack	1 litre	685	655
	500 ml	350	335
Premium Cow Ghee - Gir Cow	500 ml	999	984

Mother Dairy Ice Creams new prices

Product Category	SKU	Old MRP (In Rs.)	New MRP (In Rs.)
Ice Candy	45 gm	10	9
Vanilla Cup	50 ml	10	9
Chocobar	30 ml	10	9
Choco Vanilla Cone	100 ml	30	25
Butterscotch Cone	100 ml	35	30
Cassatta	150 ml	70	60
Kesar Pista Kulfi	60 gm	40	30
Strawberry Crush Tub	1 litre	330	300
Shahi Meva Malai Tub	1 litre	330	300
Butterscotch Combo	700 ml X 2	270	250

Safal Products new prices

Product Category	SKU	Old MRP (In Rs.)	New MRP (In Rs.)
Safal Frozen French Fries	400 gm	100	95
Safal Frozen French Fries	1000 gm	230	215
Safal Frozen Aloo Tikki	400 gm	90	85
Safal Frozen Hara Bhara Kebab	200 gm	80	75
Safal Frozen Nuggets	400 gm	110	105
Safal Frozen Jalapeno Cheese Pops	300 gm	200	185
Safal Frozen Crispy Veggie Bites	400 gm	160	150
Safal Frozen Veggie Sticks	400 gm	160	150
Safal Frozen Pizza Pockets	340 gm	180	165
Safal Lime Pickle	400 gm	130	120
Safal Mango Pickle	400 gm	130	120
Safal Mix Pickle	400 gm	130	120
Safal Green Chilly Pickle	400 gm	130	120
Safal Tomato Puree	200 gm	27	25
Safal Coconut Water	200 ml	55	50
Safal Mixed Fruit Jam	500 gm	180	165

Old GST vs New GST

Product Category	Old GST	New GST
Mother Dairy – Value-Added Dairy Products
UHT Milk (Tetra Pack)	5%	0%
Paneer	5%	0%
Ghee	12%	5%
Butter	12%	5%
Cheese	12%	5%
Milkshakes	12%	5%
Ice Creams	18%	5%
Safal – Value-Added Horticulture Products
Frozen Snacks	12%	5%
Jam	12%	5%
Pickles	12%	5%
Packaged Coconut Water	12%	5%
Tomato Puree	12%	5%

A few days ago, Amul, one of the country's most popular dairy brands clarified that there will be no reduction in pouch milk prices from September 22 as it already attracts zero percent GST. Responding to a query from ANI, Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products had said, "There is no change proposed in prices of fresh pouch milk as there is no reduction in GST. It has always been zero percent GST on pouch milk."

The relief under the new tax structure will only apply to UHT milk, which will now become cheaper with the GST rate cut from 5 per cent to nil. "Only longlife UHT milk prices will be reduced with effect from September 22 due to reduction in GST from 5 per cent to Nil." said Mehta

UHT in milk stands for Ultra-High Temperature (or Ultra Heat Treatment) processing, which involves heating milk to at least 135°C (275°F) for a few seconds, killing nearly all microorganisms and creating a sterile product. This process, combined with aseptic packaging like Tetra Packs, gives UHT milk a long shelf-life of several months without refrigeration.