Consumers Misled as Amul Confirms No Price Drop on Pouch Milk

Ahmedabad | Gujarat — Hopes of cheaper milk in Gujarat and across India were dashed after the Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets milk under the iconic Amul brand, clarified that pouch and packaged milk prices will remain unchanged despite the government’s recent Goods and Services Tax (GST) reductions.

While many citizens expected everyday milk purchases to become more affordable, GCMMF Managing Director Jayen Mehta set the record straight:

“There is no change in pouch or packaged milk prices. These were never under GST, even before the reforms. Only UHT milk and some dairy products are impacted by the tax cut,” Mehta said.

What Got Cheaper with GST Cuts?

Earlier this month, the GST Council announced reductions in 150 product categories, including several dairy items.

Ultra-High Temperature (UHT) milk: GST reduced from 5% to Nil, making tetra packs about ₹2 cheaper.

Butter, ghee, cheese, and dairy spreads: Moved from 12–18% GST to 5%, resulting in noticeable price cuts — a 1-kg pack of ghee, for instance, will now be about ₹30 cheaper.

Mother Dairy quickly followed the announcement by declaring price drops across UHT milk and ghee, raising consumer expectations that Amul would mirror the trend. However, the latest clarification by GCMMF has ended such speculation for now.

Consumers Disappointed

The clarification has left consumers divided. Daily wage earners and middle-class families, who spend a significant part of their monthly budget on milk, expressed disappointment.

“Milk is a basic necessity, not a luxury. If GST cuts do not affect pouch milk, then what is the benefit for common families like ours?” asked Ramesh Patel, a resident of Ahmedabad.

Industry Perspective

Experts argue that the government’s move is more about rationalising the tax structure than bringing direct relief to daily milk buyers. Ankita Shah, an independent dairy analyst, explained:

“The GST cuts will benefit value-added segments such as ghee, butter, cheese, and UHT milk. For cooperatives like Amul, the largest volume comes from liquid pouch milk, which was never taxed. So, prices were never going to change for that category.”

GCMMF has not yet commented on whether the reduced GST on value-added products like ghee and cheese will lead to lower retail prices under the Amul brand. With competitors like Mother Dairy already passing on benefits to customers, the dairy giant is expected to face pressure to announce revisions soon.

For now, households can expect UHT milk tetra packs, ghee, and cheese to get cheaper, but not the pouch milk that forms the daily staple for millions of Indian families.