THIRUVANANTHAPURAM: With the Kerala Cooperative Milk Marketing Federation (KCMMF) passing on the Goods and Services Tax (GST) cuts to consumers from Monday, around 100 value-added dairy products from Milma will become more affordable.
For instance, the price of Milma ghee 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%.
Similarly, the price of Milma butter will be reduced by Rs 15, bringing its MRP down from Rs 240 to Rs 225.
Milma chairman K S Mani emphasised the cooperative’s commitment to its customers, pointing out that the full benefits of the GST cuts will be passed on to consumers. He also highlighted that the rationalisation of GST on essential goods not only makes them more affordable but also strengthens the competitive position of primary milk cooperative societies in the market. “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.
The cost of a 500g pack of paneer will decrease by Rs 11, from Rs 245 to Rs 234, following the exemption of GST on paneer, which had previously been taxed at 5%. In the dessert category, a litre of Milma’s vanilla ice cream will now cost Rs 196, which is Rs 24 less than its previous price of Rs 220, thanks to a reduction in the GST rate from 18% to 5%.
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.
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.