After the government's announcements on GST reforms, a significant impact is evident. On Tuesday, Mother Dairy delighted customers by reducing the price of milk. Although the new GST rates will be effective from September 22, the company has already slashed the prices of its packaged milk by 2 INR per liter. The 1-liter toned tetra pack milk has seen a price drop from 77 INR to 75 INR. Alongside, prices for other items like ghee and cheese have also been reduced.
On September 3, the government announced GST reforms and shared details of the tax cuts on essential goods. The finance minister declared that new GST rates would be applicable from September 22, leading to cheaper milk, cheese, and even ACs and TVs. In anticipation of these changes, Mother Dairy has preemptively cut the prices on its milk products to provide substantial relief to consumers.
Mother Dairy has undertaken this initiative to offer 100% tax benefits to customers under new norms. Notably, almost the entire product portfolio of the company is either exempt from GST or falls under the 5% lower slab.
New Prices for Milk and Cheese After the Cut
After the price reduction on milk, the new rates for Mother Dairy's 1-liter UHT milk (toned tetra pack) have decreased to 75 INR from 77 INR, and the 450 ml pack is now 32 INR, down from 33 INR. Additionally, the 180 ml packs of various flavored milkshakes have dropped from 30 INR to 28 INR.
Regarding cheese prices, a 200 gram packet now costs 92 INR instead of 95 INR. Similarly, a 400 gram packet has reduced from 180 INR to 174 INR. Prices for malai cheese have also been lowered, with a 200 gram pack now priced at 97 INR instead of 100 INR.
Source: aajtak
Updated Rates for Ghee and Butter
After the price cut from Mother Dairy, the company's butter and ghee will also be available at reduced prices. A 500 gram pack of butter is now 285 INR, down from 305 INR, while a 100 gram butter slab is reduced from 62 INR to 58 INR. Meanwhile, a 1-liter carton pack of ghee has decreased from 675 INR to 645 INR, with the 500 ml pack now costing 330 INR instead of 345 INR. Additionally, the 1-liter tin pack of ghee has seen a 30 INR reduction, bringing it down to 720 INR from 750 INR.
Source: aajtak
Ice Cream Prices Lowered
In addition to reducing the costs of milk, cheese, butter, and ghee, Mother Dairy has also lowered the prices of ice creams. After the latest rate cut, the company's 45 gram ice candy, 50 ml vanilla cup, and 30 ml choco bar have all seen their prices fall from 10 INR to 9 INR. The 100 ml choco vanilla and butterscotch cones have been reduced from 30 INR to 25 INR and from 35 INR to 30 INR, respectively.
Price Reductions on Pickles and Jams Too
Along with making milk, ghee, and cheese more affordable, prices for other products in Mother Dairy's portfolio have also decreased, including pickles and jams. According to the new rate list, a 1 kg pouch of Safal frozen peas has decreased from 230 INR to 215 INR, and a 400 gram pack now costs 95 INR, down from 100 INR.
Source: aajtak
Examining changes to pickle prices, the company reports that the 400 gram pack of pickles, including mango-lime, now costs 120 INR, down from 130 INR. Moreover, a 200 gram pack of tomato puree is now available for 25 INR instead of 27 INR, a 200 ml coconut water pack costs 50 INR instead of 55 INR, and a half-kilogram pack of mixed fruit jam is now priced at 165 INR, reduced from 180 INR.
Only 2 GST Slabs Remaining
Reflecting on the government's GST reform announcements, the number of tax slabs has been reduced to just two. In this simplification process, the 12-28% slabs have been abolished, allowing only the 5-18% slabs to continue. This change particularly benefits the affordability of food items, and its impact is already visible.
