New Delhi, September 4
The government's recent move to reduce Goods and Services Tax (GST) rates on dairy products has been welcomed by the country's leading dairy cooperatives, which said the step would encourage wider adoption of milk products and support millions of farmers.
As part of the GST 2.0 rationalisation, the GST rate on major dairy products has been brought down from 12 per cent to 5 per cent.
Industry leaders said this landmark decision will help increase consumption of milk-based food items, boost affordability, and strengthen the income of farmers associated with the sector.
In an exclusive conversation with ANI, Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation, Amul, expressed gratitude to the government on behalf of millions of farmers connected to the cooperative movement.
"On behalf of the 36 lakh farmer families affiliated with the Amul Dairy Cooperative Movement in Gujarat and more than 10 crore families associated with the dairy industry of the country, we are thankful to PM Modi and FM Nirmala Sitharaman for this landmark decision of reduction in GST rates of most food items and particularly the dairy product categories. More than 30 different dairy and food product categories that we are associated with have seen a significant decline in the GST rates," Mehta told ANI.
He added that the move would increase consumption of dairy items and ensure sustained growth in the incomes and livelihood of millions of milk producers.
"We are really thankful for this welcome step, which has come in conjunction with the recent reduction in income tax rates also, which means more money in the hands of the consumers and thereby an assured future for millions of milk producers of the country and all the farmers of the country," he noted.
Sharing similar views, Manish Bandlish, Managing Director, Mother Dairy, also lauded the decision and called it a progressive reform for the dairy sector.
"We commend the Union Government's decision to reduce GST rates on a wider range of dairy products including paneer, cheese, ghee, butter, UHT milk, milk-based beverages, and ice creams. This progressive step will significantly enhance affordability and accessibility of value-added dairy products for consumers across the country," Bandlish said.
He pointed out that packaged dairy products, which are fast becoming favourites in Indian households, will see stronger demand momentum.
"By lowering the tax slabs, the move will encourage wider adoption of packaged, value-added dairy products, strengthen consumer preference for safe and quality offerings, and enable more families to enjoy wholesome dairy goodness at better value," he added.
Bandlish also said the measure would create stronger market opportunities for farmers and energise the dairy industry as a whole.
— ANI
Reader Comments
Finally some relief for common people. Dairy products are essential in Indian diets. Hope the price reduction actually reaches consumers and doesn't get absorbed by companies. Farmers deserve better returns too!
Good step but I hope the government ensures that the benefit actually reaches farmers. Sometimes these tax cuts only help corporates while farmers continue to struggle. Need proper implementation.
As someone who recently moved to India, I've noticed how important dairy is in your cuisine. Making these products more affordable will definitely help more families access quality nutrition. Great progressive move!
Bahut accha decision hai! Ghee and paneer prices were becoming too high for regular use. Now maybe I can make proper Punjabi food more often without worrying about budget 🧈 Hope ice cream also becomes cheaper for summer!
While I appreciate the tax reduction, I hope the quality standards are maintained. Sometimes cheaper products mean compromised quality. FSSAI should ensure proper monitoring so consumers get both affordability and safety.
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