The article highlights the simplicity of paneer production as a major factor in its affordability. It is described as a local product that is simple to make and can be consumed fresh with no aging required. This streamlined process eliminates the need for expensive, long-term storage and complex machinery. The new GST framework has recognized this by making fresh paneer completely tax-free, which further cements its status as an accessible and affordable dairy staple.

In stark contrast, the article explains that the production of cheese is a much more complex and time-consuming process. It involves a longer maturation period, which requires controlled environments for aging, and the use of specialized cultures. These steps, while essential for developing the unique flavors and textures of different cheeses, add significant costs to the production cycle. This is a critical point for anyone working in agribusiness, as it illustrates how a value-added product’s price is a direct function of its manufacturing complexity.

The article also alludes to the differing scales of production. While paneer is a simple product, the process of making cheese is often scaled up, and requires specific, often imported, expertise and machinery. This contributes to the final price. The new tax laws, which apply a minimal 5% GST on cheese compared to the 0% on paneer, still play a role but are not the primary driver of the price difference. The market has always understood that the process of making cheese is a global and sophisticated endeavor.