Dairy Prices Jump in Assam, Defying GST Rate Cuts

Despite the central government's GST rate cut aimed at reducing household expenses and assisting small businesses, the Sitajakhala Dairy Producers Cooperative Society Limited raised milk prices by ₹10 per litre and paneer by ₹100 per kg. This move contradicts the government's economic reforms and has been heavily criticized by consumers.

The concern is not isolated within the dairy sector but is seen as a broader trend expected to affect other industries, including apparel and farm machinery. These price increases in Assam spotlight the limitations of policy impact without adequate oversight, potentially negating the benefits intended from the government’s sacrifice, which includes an estimated ₹48,000 crore in lost annual revenue. Economists stress the importance of regulatory oversight to prevent suppliers from undermining economic policies' effectiveness by exploiting rising input costs as a justification for price hikes.

This scenario serves as a powerful warning for the global dairy community and policymakers about ensuring that economic reforms' advantages reach the intended beneficiaries. The situation underscores the complexities and the unintended consequences that can arise even from well-considered government reforms.