The Indian government has reduced the Goods and Services Tax (GST) rates on dairy products from 12% to 5% as part of the GST 2.0 rationalization. This move has been welcomed by the country’s leading dairy cooperatives, including Amul and Mother Dairy. According to industry leaders, this decision will increase consumption of milk-based food items, boost affordability, and strengthen the income of farmers associated with the sector.
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. He stated that the reduction in GST rates will increase consumption of dairy items and ensure sustained growth in the incomes and livelihood of millions of milk producers. Mehta also noted that the move has come in conjunction with the recent reduction in income tax rates, which means more money in the hands of consumers and a brighter future for milk producers.
Manish Bandlish, Managing Director of Mother Dairy, also lauded the decision, calling it a progressive reform for the dairy sector. He stated that the reduction in GST rates will significantly enhance affordability and accessibility of value-added dairy products for consumers across the country. Bandlish pointed out that packaged dairy products, which are becoming increasingly popular in Indian households, will see stronger demand momentum. He also noted that the measure will create stronger market opportunities for farmers and energize the dairy industry as a whole.
The reduction in GST rates applies to over 30 different dairy and food product categories, including paneer, cheese, ghee, butter, UHT milk, milk-based beverages, and ice creams. Industry leaders believe that this move will encourage wider adoption of milk products, support millions of farmers, and boost the overall growth of the dairy sector. The decision is seen as a welcome step by the dairy industry, and it is expected to have a positive impact on the livelihood of milk producers and the growth of the sector.