Amul Milk: Why GST Reforms Won’t Change Pouch Milk Prices

Amul, one of India’s leading dairy brands, has confirmed that the price of fresh pouch milk will remain unchanged under the latest Goods and Services Tax (GST) reforms that take effect from September 22.

The company clarified that pouch milk has always been under the zero-GST category, and therefore, no reduction in consumer prices is anticipated.

Jayen Mehta, Managing Director of the Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul, told the media, “There is no change proposed in the price of fresh pouch milk as there is no reduction in GST. It has always been zero per cent GST on pouch milk.”

While pouch milk prices remain unaffected, the reforms will benefit consumers of UHT (Ultra-High Temperature) processed milk. Prices of UHT milk are expected to drop as the GST rate on this category will be reduced from 5% to nil from September 22.

UHT milk undergoes ultra-high temperature processing, where it is heated to nearly 135°C for a few seconds to kill microorganisms. Combined with aseptic packaging such as Tetra Packs, this process extends the shelf life of milk for several months without refrigeration, making it a preferred option for households and institutions with limited cold storage facilities.

The GST Council, chaired by Finance Minister Nirmala Sitharaman, recently announced reforms that merge multiple tax rates into two key slabs—5% and 18%. Effective September 22, the new system is aimed at easing living costs and supporting broader economic growth.