Kerala: Prices of 100 Milma products eases as new GST rates sets in
The price of Milma ghee, a product that is widely used among the public will drop by Rs 45 per litre, reducing from Rs 720 to Rs 675. The 500-ml variant will also become cheaper, falling from Rs 370 to Rs 345 -- a Rs 25 decrease. This price cut is due to the reduction in GST on ghee from 12% to a more consumer-friendly 5%
Thiruvananthapuram: Its a huge relief for consumers as the new GST rates sets in with daily beneficiaries of milk products will see a major drop in prices of around 100 value-added dairy products. With the Kerala Cooperative Milk Marketing Federation (KCMMF) passing on the Goods and Services Tax (GST) cuts to consumers from today, around 100 value-added dairy products from Milma will become more affordable.
The price of Milma ghee, a product that is widely used among the public will drop by Rs 45 per litre, reducing from Rs 720 to Rs 675. The 500-ml variant will also become cheaper, falling from Rs 370 to Rs 345 -- a Rs 25 decrease. This price cut is due to the reduction in GST on ghee from 12% to a more consumer-friendly 5%.
"The new GST rates will be accelerating the purchasing power of the people here and that will help in increasing demand and thus the revenue”, said Pankajakshan, a Milma dealer at the Kasaragod dairy.
Similarly, the price of Milma butter will be reduced by Rs 15, bringing its MRP down from Rs 240 to Rs 225.
The GST reductions extend beyond these items. The tax on flavoured milk has been reduced from 12% to 5%, while GST on long-life UHT milk has dropped from 5% to 0%. Moreover, the GST on payasam mix, a popular traditional sweet, has been slashed from 18% to 5%. This new tax structure has also been applied to packaged juices, making these products more affordable for consumers.
Milma chairman K S Mani stated that the cooperatives commitment to its customers, pointing out that the full benefits of the GST cuts will be passed on to consumers.
Earlier, Milma had postponed its plans to raise the price of milk packets until January, following the announcement of the new GST rates. There had been demands to increase the milk price by `5-6 per litre.
"With these changes, prices of ghee, butter, and paneer will fall by about 7%, while ice cream prices will drop by 12-13%,” Mani said.