In a warmly received gesture, GCMMF, owner of Amul brand, expressed gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman following the Government’s sweeping Goods and Services Tax (GST) reforms, a move that dairy cooperatives say will dramatically benefit farmers and consumers alike.
On X, Amul posted: “Amul’s 36 lakh farmers thank Hon. Prime Minister Shri Narendra Modi and Hon. Finance Minister Smt. Nirmala Sitharaman for the landmark GST reduction on dairy products.
To this, Prime Minister Modi responded by praising the dairy sector’s foundational role in India’s economy, reinforcing the administration’s support for “Annadatas” through reforms such as the Rashtriya Gokul Mission and strengthened cooperative frameworks.
Modi described the GST overhaul as another significant step to “empower lakhs of dairy farmers, boost value addition and make dairy products more affordable for every household.”
The GST “2.0” rationalisation introduces a simplified structure, consolidating tax slabs to just 5 percent and 18 percent, scrapping the old 12 percent and 28 percent tiers, with a 40 percent levy reserved for luxury and “sin” goods. Notably, most dairy products will now either enjoy a zero GST rate or face just 5 percent tax, marking a major relief for both producers and consumers.
Ultra-High-Temperature (UHT) milk and packaged paneer, for example, have been made GST-exempt, while butter, ghee, cheese, condensed milk, ice cream, and dairy spreads have dropped from 12 percent to just 5 percent. Milk cans have similarly moved to the lower rate.
These changes, effective September 22, 2025, are anticipated to significantly boost consumption and spur demand in India’s ?19-lakh-crore dairy sector.
In a media interaction Jayen Mehta, Managing Director of Amul’s parent body (GCMMF) is quoted saying “On behalf of 36 lakh farmer families affiliated with Amul and over 10 crore families in the broader dairy ecosystem, the society was “thankful to PM Modi and FM Sitharaman for this landmark decision,” noting that more than 30 dairy and food categories benefited from the new GST cuts.
Experts and ministry officials expect that these tax cuts will boost rural incomes, accelerate dairy product adoption across households, and fortify the financial health of millions of small-scale farmers.
With these reforms, the Government sends a clear message: the dairy segment, symbolic of India’s agrarian backbone, is key to advancing nutritional security, economic inclusion, and rural prosperity. The cordial exchange between Amul and the Prime Minister not only highlights effective public-private collaboration, but also underscores the transformative potential of thoughtful tax policy.
