Milky Mist passes GST benefits to consumers and supports farmers with increased milk procurement prices
Milky Mist Dairy Food Limited (“Milky Mist”) today announced a revision in its prices of its products to pass on the benefits of recent Goods and Services Tax (GST) rate revisions to consumers while ensuring that farmers receive direct support through increased milk procurement prices.
Following the latest GST revisions, Milky Mist has reduced the Maximum Retail Prices (MRPs) on over 300 product categories, allowing consumers to enjoy lower prices without compromising on quality.
Paneer, for instance, has become more affordable with the GST rate reduced from 5% to 0%. Similarly, products such as cheese, butter, ghee, and condensed milk have seen significant savings with GST coming down from 12% to 5%. Ice cream and chocolate have also become more accessible to a wider audience, as their GST rate has been lowered from 18% to 5%.
Milky Mist’s revision in pricing is designed to reflect the efficiency gains from GST rate revisions. While the benefit is passed on to consumers in most categories, certain products like paneer have input material cost implications. With the GST rate revisions, a portion of the benefit (approximately 1–2%) is absorbed by the company to maintain product availability and quality.
In addition to supporting consumers, Milky Mist increased milk procurement prices by up to 3.5% from 1st September, and increased further by another 3.5 % after GST revision to ensure farmers directly benefit from the reforms and promote sustainable livelihoods. This approach ensures that farmers directly benefit from market developments while contributing to a robust farming community. This is being absorbed by the company while passing on the benefits of the GST rate revision across the project categories where the inversion of GST has been implemented.
“At Milky Mist, we are focused on our farmers and consumers. By passing on the GST benefits and increasing procurement prices, we are ensuring equilibrium in the dairy ecosystem. This initiative is a step forward in creating trust, and long-term partnerships” said Mr. K Rathnam, Whole-time Director and Chief Executive Officer, Milky Mist Dairy Food Limited.
Milky Mist believes this initiative aligns with its core philosophy of creating shared value for its stakeholders.
Milky Mist will continue to monitor market dynamics and engage with all stakeholders across the dairy value chain.
Disclaimer: MILKY MIST DAIRY FOOD LIMITED is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its Equity Shares and has filed the draft red herring prospectus dated July 21, 2025 (“DRHP”) with Securities and Exchange Board of India ("SEBI”) and the stock exchanges i.e. BSE and NSE (“Stock Exchanges”). The DRHP is available on the website of SEBI at www.sebi.gov.in, and is available on the websites of the Stock Exchanges at www.bseindia.com and www.nseindia.com, respectively, on the website of the Company at www.milkymist.com and the websites of the BRLMs, i.e., JM Financial Limited, Axis Capital Limited and IIFL Capital Services Limited (formerly known as IIFL Securities Limited) at www.jmfl.com, https://www.axiscapital.co.in/ and www.iiflcap.com, respectively. Investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the Red Herring Prospectus which may be filed with the Registrar of Companies, Tamil Nadu at Coimbatore, in future with the Registrar of Companies, Tamil Nadu at Coimbatore including the section titled “Risk Factors”. Potential investors should not rely on the DRHP filed with SEBI in making any investment decision. [The Equity Shares offered in the Offer have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws in the United States and, unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, such Equity Shares are being offered and sold (i) outside of the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur; and (ii) within the United States to “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act), pursuant to the private placement exemption set out in Section 4(a) of the U.S. Securities Act. The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction. There will be no public offering in the United States.]
