From Monday, popular private dairies will hike the prices of curd, buttermilk and lassi when the 5% Goods and Services Tax (GST) on the items comes into force.
The increase in curd prices will be around ₹3-₹4 per litre as prices are to be kept around ₹75 per kilo, explained sources in milk dairies. “We have no other option but to increase the prices as we cannot absorb the GST. However, many of us are not hiking the price of the 150-g pack from ₹10 as companies will absorb the tax. Most of the time, its the poorest of the poor who buy this pack,” a dairy representative in the city said.
Even before the inclusion of these items under the GST, a section of dairies had decreased the quantity of curd in the ₹10 packet by about 10 g and maintained the price. “For businesses, this has only meant a loss in sales, but procurement prices, hike in diesel rates and other factors pushed the companies to do this,” an industry source said.
S.A. Ponnusamy, Tamil Nadu Milk Dealers and Employees’ Welfare Association, said the Centre should not burden the common man with this hike just to increase its revenue. “They should find other avenues for raising revenue. Already there is GST on ghee, butter and flavoured milk,” he added.
Meanwhile, the Tamil Nadu Cooperative Milk Producers’ Federation will wait before it revises the rates. The federation, whose top brand is Aavin, has approached the GST Council seeking an exemption along with other cooperatives in the country like Amul and Nandhini.
