At a time when cost of dairying is increasing, the Goods and Services Tax (GST) Council decision to impose 5% tax on curd, butter milk, and lassi has come as a dampener for the dairy sector.
“Dairy sector is a source of livelihood for people in the lower strata of society. GST on high-demand milk products such as curd, lassi, and butter will force us to increase the prices that may affect the intake by consumers,” says K.S. Mani, Chairman, Kerala Cooperative Milk Marketing Federation (Milma).
The decision will put severe stress on the sector, which is already under strain due to a rise in production cost.
