KMF Cuts Prices of 21 Nandini Products Following GST Reform
Bengaluru, 25 September 2025: In a move that underscores the direct consumer impact of tax policy reform, the Karnataka Milk Federation (KMF) has slashed prices on 21 value-added Nandini dairy products. The reduction follows the Union Government’s recent decision to revise the Goods and Services Tax (GST) rate on several food items from 12% to 5%.
The revised prices took effect on 22 September 2025, with KMF swiftly passing on the benefit to consumers across Karnataka.
This strategic pricing realignment affects a wide range of popular products under the Nandini brand, including ghee, Butter, paneer, processed and mozzarella cheese, ice cream, milk, chocolates, savouries, and bakery items. The revised price structure reflects both a consumer-centric approach and a competitive market positioning.
Revised Price Highlights
| Product | Old Price | New Price |
|---|---|---|
| Ghee (1,000 ml pouch) | ₹650 | ₹610 |
| Unsalted Butter (500 g) | ₹305 | ₹286 |
| Paneer (1 kg) | ₹425 | ₹408 |
| Goodlife Milk (1 litre) | ₹70 | ₹68 |
| Processed Cheese (1 kg) | ₹530 | ₹497 |
| Mozzarella Cheese (1 kg) | ₹480 | ₹450 |
| Vanilla Ice Cream (1 kg tub) | ₹200 | ₹178 |
| Savouries (180 g) | ₹60 | ₹56 |
| Muffins (150 g) | ₹50 | ₹45 |
“The reduction in GST from 12% to 5% has allowed us to make Nandini products more affordable without compromising quality. As a cooperative, we remain committed to delivering value to both consumers and dairy farmers,” KMF noted in an official statement.
A Competitive Pivot in India’s Dairy Sector
The announcement is expected to create ripple effects across the Indian dairy industry, with consumers welcoming the relief in the face of rising food inflation. Industry watchers note that KMF’s move mirrors similar pricing actions from national players such as Amul and Mother Dairy, who also revised product prices in response to the GST change.
With India witnessing steady growth in demand for value-added dairy products, the tax cut arrives at a critical juncture. In Karnataka, Nandini products are household staples, and this price reduction is expected to stimulate consumption across urban and rural segments.
Balancing Cost Competitiveness and Farmer Viability
While the price cuts will boost consumer sentiment, dairy cooperatives face a delicate balancing act. Input costs—mainly feed, logistics, and energy—have continued to rise. Ensuring that farmer-members of the cooperative are not adversely impacted will require robust internal planning.
From a policy perspective, this development highlights how fiscal decisions, such as GST reform, can impact pricing dynamics at the retail level. For cooperatives like KMF, agility in passing on benefits reinforces trust and consumer loyalty—especially when margins are tight.
Implications for the Broader Dairy Ecosystem
This price revision presents a case study in responsive cooperative governance, highlighting how tax structures, market demand, and consumer affordability increasingly shape dairy policy in India.
Analysts believe that other state-level cooperatives may follow KMF’s lead in the coming weeks, particularly in high-demand regions such as Gujarat, Maharashtra, and Tamil Nadu.
Industry Takeaway
KMF’s price revision of Nandini dairy products illustrates the Indian dairy sector’s capacity to adapt swiftly to fiscal policy changes. As milk procurement prices, retail inflation, and consumer expectations evolve, cooperative agility will be key to long-term competitiveness.
