Milma Cuts Prices of Key Dairy Products After New GST Rates

Thiruvananthapuram: Kerala Cooperative Milk Marketing Federation (Milma) has announced a reduction in the maximum retail prices (MRP) of several of its value-added dairy products, following changes in the Goods and Services Tax (GST) structure that came into effect on Monday.

The biggest cut comes in the price of ghee, with the 1-litre pack dropping by Rs. 45—from Rs. 720 to Rs. 675. The 500-ml pack now costs Rs. 345, down Rs. 25 from its earlier price of Rs. 370. The price cuts reflect the reduction of GST on ghee from 12% to 5%.

Butter prices have also been revised. A standard pack will now cost Rs. 225, down Rs. 15 from the earlier Rs. 240. The price of paneer has come down as well. A 500-gm pack now retails for Rs. 234, compared to the earlier Rs. 245. The price drop follows the complete removal of the 5% GST previously levied on paneer.

In desserts, vanilla ice cream will now cost Rs. 196 per litre, a reduction of Rs. 24 from the previous MRP of Rs. 220. GST on ice cream has been reduced from 18% to 5%, resulting in a 12–13% price cut.

Other products will also become more affordable. The GST on flavoured milk has been reduced from 12 percent to 5 %. Long-life UHT milk is now fully exempt from GST, down from 5 % earlier. The GST on flavoured milk has been cut from 12 % down to 5 % Payasam mix will come at a lower GST rate of 5%, reduced from the previous 18%.