New GST Update: Curd and Buttermilk to Become Expensive from Today

Nandini curd will cost Rs. 46 from Monday, a Rs. 3 hike due to the 5% GST on milk products. A 200 ml packet of buttermilk, which formerly cost Rs. 7, would now cost Rs. 8.

A sachet of delicious lassi that previously cost Rs. 10 would now cost Rs. 11, according to Karnataka Milk Federation (KMF) Chairman Balachandra Jarkiholi.

While there has been a demand from milk farmers to raise remunerative pricing, the government has not given the go-ahead owing to various constraints, he added. Kurubur Shantakumar, a farmers’ leader, stated, "This government's policies are aimed at destroying farmers. It's a tragedy."

"On the one hand, they give subsidies for farmers' output, while on the other, they want to levy GST on farmers' produce. At the same time, they are providing assistance to people who enjoy gambling and horse racing, remarked "Kurubur Shantakumar, a farmer leader.

K Chandrashekhar, chief of the Raitha Sangha, stated, "there have been several cases of extreme poverty driving farmers to commit suicide.

This is because the government does not compensate them for all of their dairy inputs. 

The 5% GST would have made sense if the government had adopted the MS Swaminathan report, which advocates for appropriate pay for animal husbandry producers. The government-set price per liter of milk supplied to farmers is unfair, as it does not cover all input expenses "he said.

The price increase has left KMF (Karnataka Milk Federation) unhappy since the cooperative sector had been waiting for the government's consent to raise milk and other dairy product prices for almost six months. 

"The GST ruling was a blow to the dairy business. Our request to modify milk pricing, which has been waiting for over a year, would be denied as a result of this unavoidable change." "a government official explained.

"More than half of KMF's sales are made in Bengaluru, and any move to raise milk prices would badly damage the government's image. As a result, it has remained mute on KMF's plan. Karnataka now gives farmers the lowest payment per liter of milk (Rs 37)."