Amul Says No Price Cut for Pouch Milk; GST Relief Only for UHT Milk

Amul has clarified that the price of its fresh pouch milk will remain unchanged even after the implementation of “GST 2.0” on September 22, 2025. The company says this is because pouch milk has always attracted zero percent GST, so there is no tax relief to be passed on in that segment.

Only UHT (Ultra-High Temperature / long-life) milk will see a price benefit, as its GST rate is being reduced from 5% to nil under the new tax framework. Amul’s managing director, Jayen Mehta, said media reports suggesting a reduction of Rs 3-4 in pouch milk prices are incorrect.

Industry Insight

This clarification from Amul underscores how tax policy changes don’t always translate into cost savings for all segments—if the product was already exempt, there is no margin for additional relief. It reinforces the importance for companies to clearly communicate tax status to avoid raising consumer expectations that cannot be met.

For the dairy sector as a whole, the GST 2.0 reform will still bring meaningful benefits in the “long-life” dairy category (UHT milk), which will likely become more attractive due to lower cost post-tax reductions. This could shift consumer purchase patterns, especially in regions with less cold-chain infrastructure where pouch/fresh milk has traditionally dominated. Suppliers, distributors, and retailers may need to prepare for this shift and consider positioning UHT products more prominently.

Source : Dairynews7x7 Sep 11th 2025 ET