In a landmark decision, Centre has announced wide-ranging reductions in Goods and Services Tax (GST) across key sectors that directly impact cooperatives, farmers, rural enterprises and benefit more than 10 crore dairy farmers in the country.

These reforms will strengthen the cooperative sector, make their products competitive, increase demand or their products and increase income of cooperatives. It will promote rural entrepreneurship, promote cooperatives in food processing sector and ensure affordable access to essential goods for millions of households.

GST rate reductions will benefit cooperatives in farming and animal husbandry, promote sustainable farming practices, and benefit small farmers and FPOs. The #NextGenGST reforms brought under the leadership of Prime Minister Shri Narendra Modi Ji has been hailed by the entire dairy cooperative sector, including the big cooperative brands like AMUL.

In the dairy sector, direct relief has been provided to farmers and consumers as milk and paneer, whether branded or unbranded, have been exempted from GST, while the tax on butter, ghee and similar products has been reduced from 12% to 5%, and GST on milk cans made of iron, steel or aluminium has also been lowered from 12% to 5%.

These measures will make dairy products more competitive, provide direct relief to dairy farmers, and strengthen women-led rural enterprises, particularly self-help groups engaged in milk processing.