Nandini Price Cuts After GST 2.0: Ghee, Paneer, Ice Cream & More Get Cheaper

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by

Himanshu
in

The recent rollout of GST 2.0 has brought welcome relief for consumers, especially on everyday dairy and snack items. Among those leading the change, Nandini (a brand under the Karnataka Milk Federation, KMF) has revised its retail prices for several milk-based and related products, effective from September 22, 2025. From ghee to ice creams and butter, many items will now cost less, reflecting lower tax rates under the new GST reform.

This article breaks down the revised prices, explains which products are affected, and what the GST changes mean for customers.

What Changed: GST Rate Revision

Under the recent tax reform, the GST on many essential dairy and food products has been reduced. Key changes include:

  • Products like ghee, butter, paneer, cheese, ice cream, savouries, muffins, cookies and others that were earlier taxed at higher rates are now under a lower GST slab.
  • Ultra-high temperature (UHT) milk in certain packaged forms has seen its GST rate reduced further or made exempt where applicable.
  • Some products that were under luxury or non-essential categories remain unaffected or moved to higher rate slabs if they are considered non-essentials.

These changes aim to simplify tax structure, reduce consumer burden, and make essential food items more affordable.

Revised Prices: Nandini Products

Here is a table showcasing the old and new prices of selected Nandini products after the GST rate cut:

ProductPack SizeOld PriceNew PriceApproximate Percentage Drop
Ghee (pouch)1 litre₹ 650₹ 610~6.2%
Unsalted Butter500 gms₹ 305₹ 286~6.2%
Paneer1 kg₹ 425₹ 408~4.0%
Goodlife Milk1 litre₹ 70₹ 68~2.9%
Processed Cheese1 kg₹ 530₹ 497~6.1%
Mozzarella Cheese – Diced1 kg₹ 480₹ 450~6.2%
Vanilla Ice Cream Tub1 kg₹ 200₹ 178~11.0%
Savouries180 gms₹ 60₹ 56~6.7%
Muffins150 gms₹ 50₹ 45~10.0%

These are just a few of the board-wide changes; more products have been revised in a similar manner.

Which Products Saw the Largest Benefit

From the list above, a few items stand out for having relatively larger price drops:

  • Vanilla ice cream (1 kg tub) saw a price drop of about 11%.
  • Muffins (150 gms) also have a drop of around 10%.
  • Dairy staples like ghee, butter and processed cheese have seen price adjustments in the 4-7% range.

While the percentage drop may not seem huge in every case, for everyday buyers and families, this leads to noticeable savings over time.

What Did Not Change

Though many products became cheaper, not all items were affected equally. Key points that remain unchanged or less affected:

  • Fresh milk and curd did not see price changes via GST adjustment in many cases, because their tax treatment was already at low or nil GST rates.
  • Luxury or premium branded items may continue to have higher effective tax or pricing depending on variant or packaging.
  • Certain snacks, or newly introduced product lines under luxury or non-essential categories, may have seen GST increase or remained unchanged, depending on classification.

Why These Price Cuts Matter

These revisions are more than just minor discounts. They matter for several reasons:

  1. Relief for households
    Families purchasing dairy staples regularly will see savings accumulate over time—especially for items like ghee, butter, paneer, and cheese.
  2. Inflation moderation
    In periods when food inflation is high, lower GST rates and revised retail prices help in keeping the cost of essential items in check.
  3. Greater access
    Reduced prices can make quality dairy and snack products more accessible to lower-income households, increasing dietary variety.
  4. Boost in demand
    Producers and cooperatives like KMF may see increased demand for these revised products, which can help scale production and reduce costs further.

Things to Check as a Buyer

When you go shopping in light of these GST changes, here’s what to keep in mind:

  • Check packaging date or price labels: After reform, not all stores will update immediately. Some older stock may still carry old prices.
  • Variants and sizes matter: Sometimes bulk or value packs may have different adjustments.
  • Quality should remain consistent: Tax cuts do not mean change in product formulation or ingredient quality.
  • Stay informed: Official price lists from cooperatives like KMF provide accurate information, so keep an eye on those.

Overall Impact

The Nandini price cuts are part of a broader move under GST 2.0 to adjust tax slabs in favour of consumers for essential food and dairy products. Although the price dips per unit are modest in many cases, they are significant when judged cumulatively for regular usage. These changes are also likely to set precedent, encouraging other brands to pass on tax cuts and help consumers ease their monthly grocery budgets.

Disclaimer: The price information is based on announcements effective September 22, 2025, by Karnataka Milk Federation. Prices may slightly vary by city, retailer type, and packaging. Check with your local store for accurate updated MRP before purchase.