Karnataka Milk Federation Slashes Prices Following GST Reforms

The Karnataka Co-operative Milk Producers Federation has announced significant price reductions for its Nandini milk products following recent reforms in the Goods and Services Tax (GST) structure. The price revision, affecting 21 products, was issued on September 20 and takes effect on September 22.

The GST Council's 56th meeting facilitated a shift from a four-rate system to a more streamlined two-slab regime of 5% and 18%, with a 40% slab retained for luxury goods. This reduction in GST has led to a decrease in the prices of essential dairy products. For example, the cost of ghee has dropped from Rs 650 to Rs 610 for 1000 ml, while a 500g pack of unsalted butter now costs Rs 286, down by Rs 19. Similarly, a 1 kg processed cheese block now costs Rs 497, previously priced at Rs 530.

Major FMCG brands, including Amul and Mother Dairy, have also embraced the GST cut, reducing prices substantially. Products like milk, butter, paneer, and snacks are now categorized under the 5% slab. Amul butter's price decreased to Rs 58 for 100g, while Ultra High Temperature (UHT) milk is now Rs 75 per litre. Mother Dairy has likewise reduced prices across various dairy and frozen items, aligning with the new GST adjustments.

(With inputs from agencies.)