Milk Prices in India
Recent milk prices in India have been volatile, marked by price hikes due to rising input costs followed by reductions in September 2025 due to a government GST cut. Major dairy brands like Amul and Mother Dairy increased prices throughout early to mid-2025, citing higher procurement costs driven by expensive cattle feed, heatwaves affecting production, and other operational expenses. However, in September 2025, the government removed the 5% Goods and Services Tax (GST) on packaged milk, leading to an immediate price cut of approximately ₹3–₹4 per litre. This move was intended to provide relief to consumers facing inflation and to boost demand during the festive season. The tax reduction also led to lower prices for other dairy products like paneer, ghee, and butter. Despite the recent relief, market analysts predict that overall prices will remain somewhat elevated due to persistent pressures on production, including high input costs and growing consumer demand.
