GST Rate Cuts to Boost India's Dairy and Agricultural Sectors

The Indian government's recent decision to reduce GST rates on dairy products, farm inputs, and food processing items is predicted to have a direct and positive impact on over 10 crore dairy farmers, as stated by the Ministry of Cooperation. The restructuring aims to resolve the inverted duty structure in fertilizer manufacturing, thereby controlling price hikes for farmers and ensuring timely availability of inputs during sowing seasons. Specifically for dairy farmers, exemptions on products such as milk and paneer, along with reduced rates on processing equipment, are expected to enhance profit margins for individuals and cooperatives alike. This decision has been welcomed by major dairy brands, including Amul. Moreover, the reduced prices of tractors and components are poised to benefit small farmers engaged in mixed farming and animal husbandry by making machines used for fodder cultivation and produce transportation more affordable.