GST rate cuts to benefit 10 crore dairy farmers: Ministry of Cooperation

New Delhi: The Goods and Services Tax (GST) rate cuts on dairy products, farm inputs, and food processing items will directly benefit over 10 crore dairy farmers and strengthen the cooperative sector, the Ministry of Cooperation said on Saturday.

The restructuring addresses the inverted duty structure in fertiliser manufacturing and is expected to check price rise for farmers while ensuring timely availability of inputs during sowing seasons, the ministry said in a statement.

For dairy farmers, exemptions on milk and paneer, along with lower rates on processing equipment, are likely to improve margins for both individuals and cooperatives. Major dairy brands, including Amul, welcomed the move. Reduced prices of tractors and components are expected to aid small farmers engaged in mixed farming and animal husbandry, as these machines are widely used for fodder cultivation and transporting produce.