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Amul Pouch Milk Prices Remain Unchanged Despite GST 2.0 Reforms – Here’s Why
India’s GST 2.0 reforms have created widespread discussion about how taxation changes might affect everyday consumer goods. Among the hot topics is Amul pouch milk, one of the most widely consumed dairy products in the country. Many consumers expected a price reduction following GST 2.0 implementation.
However, Amul has clarified that pouch milk prices will remain unchanged, even after GST 2.0 comes into effect on September 22, 2025. This article explains why, compares it with other milk products, and highlights the broader impact of GST 2.0 on Indian dairy.
Understanding GST 2.0 and Its Scope
The GST 2.0 reforms were introduced to simplify taxation and reduce the burden on essential items. Key highlights include:
| Feature | Details |
|---|---|
| Target Products | Processed food items, packaged beverages, UHT milk, and select FMCG goods. |
| Tax Reduction | Certain processed products, like UHT milk, have seen GST reduced from 5% to 0%. |
| Purpose | Reduce consumer costs, improve affordability, and streamline the taxation framework. |
| Effective Date | September 22, 2025. |
It’s important to note that GST on fresh milk (pouch milk) has already been zero, meaning there’s no tax cut left to reflect in its pricing.
Amul’s Position on Pouch Milk Pricing
Amul, India’s leading dairy cooperative, has officially stated:
- Pouch milk prices will remain unchanged.
- There is no reduction in GST for pouch milk, as it has always been exempt from GST.
- Consumers should not expect any price fluctuation in the near future.
| Product Type | Current GST | Price Impact Post GST 2.0 |
|---|---|---|
| Pouch Milk | 0% | No change |
| UHT Milk | 5% → 0% | Prices expected to decrease |
| Packaged Flavored Milk | Varies | Price reduction possible depending on product |
This distinction clarifies why household staples like Amul pouch milk remain unaffected, while processed and UHT milk benefit from GST reductions.
Why Pouch Milk Prices Are Stable
Several reasons explain why Amul pouch milk prices will not drop:
- Already GST-Exempt: Pouch milk has always been taxed at 0%, so GST reforms do not affect it.
- Raw Material Costs: Fluctuations in milk procurement, packaging, and logistics largely determine the selling price, rather than GST.
- Market Stability: Keeping pouch milk prices stable ensures affordability for millions of households, maintaining public trust and consistent demand.
Impact of GST 2.0 on Other Dairy Products
While pouch milk remains unaffected, other segments of the dairy market benefit from GST 2.0:
| Product | GST Before | GST After | Expected Impact on Price |
|---|---|---|---|
| UHT Milk | 5% | 0% | Significant price reduction |
| Flavored Milk | 12% | 5-12% depending on type | Moderate price reduction |
| Dairy-based Beverages | 12-18% | Reduced according to GST 2.0 schedule | Consumers may save up to 10-15% |
This table helps consumers understand which products will become more affordable and which will remain at the same price point.
Key Takeaways for Consumers
- No Price Change for Pouch Milk: Households can continue to buy Amul pouch milk at the same price as before.
- UHT Milk Becomes Cheaper: Consumers opting for UHT milk will benefit from lower prices.
- Clarity on Misconceptions: Not every dairy product will see a price drop; it depends on pre-existing GST rates.
Conclusion
Amul’s confirmation that pouch milk prices will remain unchanged clears widespread confusion amid GST 2.0 reforms. While processed and UHT milk become more affordable, essential items like fresh milk continue to provide stability and accessibility for millions of Indian households.
For shoppers, the takeaway is clear: expect savings only on products where GST was previously applied, while staple items remain a reliable, affordable choice.