Milma Passes on GST Cut Benefits to Consumers; Dairy Products Get Cheaper

THIRUVANANTHAPURAM:

The Kerala Cooperative Milk Marketing Federation (KCMMF), known by the brand name Milma, has announced a substantial reduction in the maximum retail prices (MRPs) of all its value-added dairy products.

This change in prices of around 100 Milma products is effective with the introduction of the new Goods and Services Tax (GST) regime, which commences on Monday, enabling the federation to pass on the benefits to consumers.

One litre of Milma’s highly regarded Ghee will see a decrease of Rs 45, with the price reducing from Rs. 720 to Rs. 675. The 500-ml variant will also become more affordable, dropping from Rs. 370 to Rs. 345, reflecting a Rs. 25 cut.

This price reduction is attributed to the reduction of GST on ghee from 12 per cent to a more consumer-friendly 5 per cent.

Similarly, the price of Milma’s butter is set to fall by Rs. 15, its MRP changing from Rs. 240 to Rs. 225. The cost of a 500-gm pack of paneer will decrease by Rs. 11, bringing it down from Rs. 245 to Rs. 234, as the GST on paneer was exempted altogether, eliminating a prior five per cent tax.

In the dessert category, a litre of Milma’s beloved vanilla ice cream will now cost Rs. 196, which is Rs. 24 less than the previous MRP of Rs. 220, thanks to a reduction in the GST rate from 18 per cent to just five per cent.

Milma Chairman KS Mani, reiterated Kerala’s dairy cooperative’s dedication to its much-valued customers as evident in its proactive approach in passing on the full benefits of the GST cuts to consumers.

He further emphasised that the rationalisation of the GST framework on essential goods not only bolsters consumer affordability but also empowers primary milk cooperative societies, by enhancing their competitive positioning in the market. “With these adjustments, the prices of ghee, butter, and paneer will decline by approximately seven per cent, while the ice creams will become cheaper by around 12 to 13 per cent,” Shri Mani added.

The GST reductions are not limited to these items; the tax on flavoured milk has also been reduced from 12 per cent to five per cent, and the GST on long-life UHT milk has dropped from five per cent to zero.

Additionally, GST on payasam mix—a popular traditional sweet—has seen a drastic decrease from 18 per cent to five per cent. This adjusted tax structure has similarly been implemented for packaged juices, making these products more accessible to consumers.