GST Rate Cuts to Benefit 10 Crore Dairy Farmers, Says Cooperation Ministry

The Ministry of Cooperation on Saturday announced that the recent GST rate cuts on dairy products, farm inputs, and food processing items will provide direct benefits to over 10 crore dairy farmers across India while giving a major boost to the cooperative sector.

In a statement, the ministry said the restructuring would also correct the inverted duty structure in fertiliser manufacturing, a step expected to check input costs and ensure the timely supply of fertilisers during sowing seasons.

For dairy farmers, the exemption of GST on milk and paneer, along with reduced rates on processing equipment, is set to improve margins for both individual producers and cooperative societies. Leading dairy brand Amul welcomed the move, calling it a much-needed push to the sector.

The reform also promises relief for small and marginal farmers engaged in mixed farming and animal husbandry. With lower GST on tractors and key components, costs are expected to fall on machinery widely used for fodder cultivation and produce transportation.

According to the ministry, the combined effect of these measures will not only ease financial pressure on farmers but also expand the reach and strength of cooperatives, while ensuring consumers benefit from more affordable agricultural and dairy products.

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