Prices of value-added milk products reduced

Following directions from the Karnataka Milk Federation, the Belagavi District Milk Union has reduced the price of most of its value-added products.

This is a fallout of the changes in Goods and Service Tax rate slabs.

Prices of 21 products have been reduced. This came into effect on September 22. “This decision is meant to pass on the benefits of price cut to our consumers,” according to Belagavi Milk Union chairman and MLA Balachandra Jarkiholi.

Responding to the demand of the cooperative sector, the Central government has reduced the GST rate on milk products to 5% from 12% on some products and to 5% from 18% on others. Tax on some essential products has been reduced to zero from 5%. However, there has been no change in the rates of milk and curds.

According to the new list released by the milk union, there has been a clear reduction in the prices of many items, including ghee, cheese, paneer, good fruit milk, ice cream, butter, buttermilk, cream, powdered milk, sauce, whey protein, rice cream milk and chocolate.

The price of a kilogram of ghee is reduced to ₹610 from ₹650. A packet of one kg of paneer is reduced to ₹408 from ₹425 and cheese to ₹497 from ₹530 per kg. Similarly, a 100 ml ice cream cup will now cost ₹31 from the earlier ₹35.

The Union government’s decision will encourage cooperative milk producers in the State, including those in Belagavi. This is likely to pave the way for higher production and sales.

“This GST rate reduction has made our products more consumer friendly. Both farmers and consumers will benefit from it,” he said.