Milky Mist passes GST benefits to consumers
Milky Mist Dairy Food Limited (“Milky Mist”) announced a revision in its prices of its products to pass on the benefits of recent Goods and Services Tax (GST) rate revisions to consumers while ensuring that farmers receive direct support through increased milk procurement prices.
Following the latest GST revisions, Milky Mist has reduced the Maximum Retail Prices (MRPs) on over 300 product categories, allowing consumers to enjoy lower prices without compromising on quality.
Paneer, for instance, has become more affordable with the GST rate reduced from 5% to 0%. Similarly, products such as cheese, butter, ghee, and condensed milk have seen significant savings with GST coming down from 12% to 5%. Ice cream and chocolate have also become more accessible to a wider audience, as their GST rate has been lowered from 18% to 5%.
Milky Mist’s revision in pricing is designed to reflect the efficiency gains from GST rate revisions. While the benefit is passed on to consumers in most categories, certain products like paneer have input material cost implications. With the GST rate revisions, a portion of the benefit (approximately 1–2%) is absorbed by the company to maintain product availability and quality.
In addition to supporting consumers, Milky Mist increased milk procurement prices by up to 3.5% from 1st September, and increased further by another 3.5 % after GST revision to ensure farmers directly benefit from the reforms and promote sustainable livelihoods. This approach ensures that farmers directly benefit from market developments while contributing to a robust farming community. This is being absorbed by the company while passing on the benefits of the GST rate revision across the project categories where the inversion of GST has been implemented.
“At Milky Mist, we are focused on our farmers and consumers. By passing on the GST benefits and increasing procurement prices, we are ensuring equilibrium in the dairy ecosystem. This initiative is a step forward in creating trust, and long-term partnerships” said Mr. K Rathnam, Whole-time Director and Chief Executive Officer, Milky Mist Dairy Food Limited.
Milky Mist believes this initiative aligns with its core philosophy of creating shared value for its stakeholders. Milky Mist will continue to monitor market dynamics and engage with all stakeholders across the dairy value chain.
Source : Dairynews7x7 Sep 24th 2025 Press release by Milkymist