Considering the heavy stock of milk products and ghee in cooperative dairies of Rajasthan, the Indian Dairy Association has demanded a reduction in goods and services tax (GST) from 12% to 5%.
Ajmer dairy chairman Ramchandra Choudhary said that a delegation from the association including Saras and Mother Dairy met Gaurav Singh, the deputy secretary of Union finance ministry in New Delhi and apprised him of the situation. They said that due to the GST rates, cooperative dairies were having large stock of ghee. “After implementing GST on ghee, the price increased by Rs 26 and cooperatives are, therefore, facing loss,” said Choudhary.
From last year, every dairy has a huge stock of ghee and are running at a loss. The unorganized milk sector is not paying GST and is earning more profit from the market. This has amounted to a loss of revenue for the government and increased the spread of the unorganized sector which does not follow any norms.
At present, the sale price of 15 litres of ghee has fallen to Rs 4,800 for Rs 7,300 last year. As dairy milk products are not selling in the market, it has directly affected cattle farmers. Last year, cattle farmer was getting Rs 40 to 43 per litre but now they earn Rs 32.