PALAKKAD: The value-added milk products like curd, butter milk and lassi in the state will cost more from Monday. This follows the decision of the GST council to impose 5 per cent GST on pre-packed milk products, said Milma chairman KS Mani.
Speaking to The New Indian Express, Mani said that the price increase is being effected since Milma will be unable to absorb the losses. The management of Milma has decided to raise the prices on a pro rata basis by rounding off to the nearest amount.
Currently, curd is being sold at Rs 27-28 for a 200g packet. From Monday, it will go up to Rs 30. Mani said in the Malabar area, butter milk is being sold at Rs 5 per 180 ml packet as part of Milma's social commitment. Milma would like to retain it at the same price only in the Malabar area by reducing the quantity to 175 ml.
However, in the areas coming under the Thiruvananthapuram and Ernakulam co-operative milk producers’ unions, butter milk is being sold at `10 per 180ml packet. Milma is currently examining whether the quantity could be reduced and the price maintained at the same rate, said Mani.
Lassi is not in much demand except in the Thiruvananthapuram union areas. The prices of lassi also would have to be increased. Mani said in future, if GST is imposed on milk too, it can seriously affect the dairy sector. Following the GST council's decision, farmer members of milk societies will stage protests across the state on July 27.
The same day, a parliament march by milch farmers is also being planned. Mani said a representation has been given by Milma to Union Finance Minister Nirmala Sitharaman urging her to withdraw the 5% GST on milk products.