The ICAR-National Dairy Research Institute (NDRI) has welcomed the recent Goods and Services Tax (GST) reforms as a major milestone for India’s dairy industry. Dr Dheer Singh, Director and Vice-Chancellor of ICAR-NDRI, said effective on September 22, 2025, all milk and dairy products are either exempt from GST or attract a significantly reduced rate of 5 per cent.
As India continues to solidify its position as the world’s largest producer of milk, the dairy sector plays a vital role in the national economy — contributing over 6 per cent to India’s GDP and supporting the livelihoods of more than 80 million dairy farmers. Singh said the sweeping GST tax rationalisation would bring considerable benefits to farmers and consumers by reducing production costs, enhancing the affordability of dairy products, and improving the global competitiveness of Indian dairy exports.
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Key dairy products such as milk, paneer, butter, ghee and cheese now attract favourable GST rates, a policy shift that will directly support the rural community of over eight crore dairy farming families nationwide.Singh said that now, the price of 500 grams of paneer has decreased by Rs 10, and the rate of ice cream has been revised down from Rs 30 to Rs 26. These GST changes are in sync with broader government initiatives.
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