GST reforms announced by the Government of India waive tax on milk and paneer and reduce it to 5% on butter, ghee, cheese, namkeens, jams, fruit pulps, and several other dairy and food processing products. These reductions aim to improve nutrition security, lower household expenditure, and strengthen the rural cooperative economy. Farmers and more than 10 crore dairy producers stand to benefit directly, with enhanced access to affordable inputs and markets. Relief extends across production and packaging chains: GST on fertiliser inputs, bio-pesticides, farm machinery (including tractors under 1,800 cc), and tractor components is reduced to 5%; GST on packing materials also lowered, easing logistics. Additionally, GST on commercial goods vehicles has been cut from 28% to 18%, facilitating reduced freight costs and better competitiveness for agricultural goods.
Relevant question for policy stakeholders: How can these GST reductions be leveraged alongside capacity-building and infrastructure investments to sustainably scale rural cooperatives’ operations and market reach?
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https://www.pib.gov.in/PressReleasePage.aspx?PRID=2164370
