No price cut for pouch milk, only UHT variant gets GST relief: Amul

Amul, India’s leading dairy brand, has confirmed that the recent changes in the Goods and Services Tax (GST) framework will not impact the price of pouch milk. Starting September 22, only Ultra-High Temperature (UHT) processed milk will see a reduction in cost due to the removal of the 5% GST levy. Contrary to earlier media reports suggesting a price cut in packaged pouch milk, Amul clarified that fresh milk has always been exempt from GST and will remain unaffected.

No Change in Pouch Milk Prices

Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), the parent body marketing Amul products, stated clearly that there will be no reduction in pouch milk prices. He explained:

“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.”

This clarification comes after speculation that packaged milk prices could drop by ₹3–₹4 under the new GST 2.0 framework.

UHT Milk to Get GST Relief

The GST relief is applicable only to longlife UHT milk, which is commonly packaged in cartons or Tetra Packs. From September 22, UHT milk will become cheaper as the GST rate has been cut from 5% to nil. This marks a notable change for consumers who rely on long-shelf-life milk products.

What is UHT Milk?

UHT stands for Ultra-High Temperature (also known as Ultra Heat Treatment) processing. In this process, milk is heated to at least 135°C (275°F) for a few seconds to kill harmful microorganisms. When combined with aseptic packaging, this method allows milk to be stored without refrigeration for several months while retaining its nutritional value.

Thus, while fresh pouch milk remains unaffected, UHT milk consumers will directly benefit from lower retail prices starting September 22.

Government’s Next-Gen GST Reform

The GST relief on UHT milk is part of a broader tax rationalisation reform announced by Finance Minister Nirmala Sitharaman on September 3. Dubbed the Next-Gen GST Reform, the measures aim to make everyday essentials more affordable and boost economic activity across sectors.

Key highlights of the reform include:

• Rationalisation of GST rates into two slabs – 5% and 18%.

• Merging of the existing 12% and 28% categories into the new structure.

• A focus on reducing the cost of living for households and improving affordability of consumer goods.

The 56th GST Council meeting finalised these decisions, presenting them as a major Diwali gift to citizens, businesses, farmers, and the healthcare sector.

Impact on Consumers and Market

For households, this reform means more savings on certain essential items. While pouch milk prices will remain unchanged, the price cut on UHT milk makes it a more cost-effective option for consumers who prefer convenience and longer shelf life.

Experts believe that this move could encourage greater adoption of UHT milk in urban and semi-urban markets where storage and refrigeration can be a challenge.

Amul’s Clarification to Curb Miscommunication

Amul’s clarification comes at a crucial time, as misleading reports had created an impression that all packaged milk would get cheaper. By setting the record straight, the company reassured consumers that the price of their daily-use pouch milk will remain steady, while only UHT milk will reflect the GST benefit.

Conclusion

To summarise:

• No impact on pouch milk prices – GST remains 0% as before.

• UHT milk will be cheaper – GST reduced from 5% to nil effective September 22.

• Part of Next-Gen GST reforms – aimed at rationalising rates and reducing household expenses.

This change highlights the government’s push for tax simplification while giving consumers more choices in the dairy segment. For Amul, the message is clear: while daily milk essentials remain stable in price, value-added UHT milk products are set to become more affordable.