This price reduction is a direct result of a strategic decision by the Central government to reduce the Goods and Services Tax (GST) on various dairy items. The article provides key data journalism, specifying the GST cuts: from 12% to 5% on products like ghee and cheese; from 18% to 5% on cream and ice cream; and from 5% to zero on paneer and buttermilk. These tax reductions created the opportunity for the cooperative to lower its prices and directly impact household budgets.

According to Balachandra Jarkiholi, the President of the Belagavi Milk Union, the move is intended to provide immediate relief to consumers by lowering the cost of essential products. However, the strategy also has a strong commercial motive. The article notes that the lower prices are expected to stimulate demand and increase sales. This, in turn, will indirectly benefit the milk producers who supply the cooperative, creating a virtuous cycle within the food supply chain.

For analysts and producers in dairy economics, this is a powerful case study. It demonstrates a market where a major cooperative is actively using government policy to its advantage, not just to benefit consumers but to also gain a competitive edge. By passing on tax benefits, KMF is positioning itself as a consumer-friendly brand, which could lead to increased market share and stronger loyalty against private-sector competitors in the region.