GST Cuts Empower India's Dairy Farmers and Cooperatives

The recent GST rate cuts on dairy products, agricultural inputs, and food processing items are set to benefit over 10 crore dairy farmers, according to India's Ministry of Cooperation. With lower GST rates, the cooperative sector is poised for growth, the ministry announced on Saturday.

The restructuring specifically addresses the inverted duty structure in fertiliser manufacturing, a move expected to curb price hikes and ensure the timely availability of crucial inputs during the sowing season. This initiative will gradually ease cost pressures on the farmers, the statement added.

Furthermore, dairy farmers stand to gain from the exemption on milk and paneer. Additionally, reduced GST rates on processing equipment are anticipated to improve margins for both individual farmers and cooperatives. Major brands like Amul have welcomed these provisions, foreseeing a positive impact on their operations.

(With inputs from agencies.)