GST Rate Cut Breathes New Life into Dairy Sector

The Indian government's decision to slash GST rates on a range of dairy products to 5% is expected to yield widespread benefits for consumers and farmers alike, according to K Rathnam, CEO of Milky Mist Dairy Food Ltd.

This move will make nutritious and value-added dairy items such as cheese, butter, and ghee more 'affordable' and 'accessible' to the public. Rathnam emphasized that the tax reform serves as a timely boost for the dairy sector, encouraging demand and innovation while fortifying the formal and organized dairy ecosystem.

The reduction also aligns with national goals for improved nutrition, especially in rural and semi-urban areas. With GST on some items reduced to nil, the shift promises a healthier public and a stronger market for high-quality dairy products. The industry sees this as an opportunity to reinvest in sustainable practices and innovation.

(With inputs from agencies.)