The GST council, at its 47th meeting recently, decided to withdraw the tax exemption given to packaged dairy products, prompting both the public and private sectors to increase the cost of such products.
The council’s decision, while leaving a hole in the pockets of citizens, will also have a severe impact on the dairy sector, which is already struggling to cope with the rising cost of dairying. Sources at Karnataka Milk Federation (KMF) told STOI the federation has decided on an average hike of Rs 2-3 on a variety of products. “The products that will be affected include curds, sweet lassi and buttermilk. On average, the hike will be Rs 2-3 for curds, while it will be Rs 1 for buttermilk and lassi pouches,” KMF chairman Balachandra L Jarkiholi said.
At present, a pouch of Nandini curd (500 grams) is sold for Rs 22. The price will be Rs 24 henceforth. Similarly, 1kg of curd will cost Rs 46, up from Rs 43. “Going by the 5% GST, we have to additionally charge Rs 2.25 to Rs 2.6 for these categories. We have rounded it up to Rs 3,” a senior KMF official said. The revised price will be applicable to all varieties and flavours of curd, buttermilk and lassi.
KMF in a fix
