FM Pushes Dairy Makers to Pass GST Cuts to Consumers
Finance Minister Nirmala Sitharaman has urged dairy manufacturers to actively engage in reducing retail prices of ghee, butter, and cheese, ensuring that consumers fully benefit from the recent GST rate reductions. The government emphasized that any cut in GST should directly reflect in market prices, preventing price retention at the manufacturer or distributor level.
Industry sources indicate that this move is expected to increase affordability for households and improve dairy consumption, especially for premium dairy products. The FM’s call also signals closer regulatory monitoring, with authorities likely reviewing pricing trends to ensure compliance and transparency.
Industry Insight:
The Finance Ministry’s push could spur competitive pricing among dairy processors while protecting rural dairy farmers’ margins. For organized dairy chains, this may require recalibration of pricing strategies and cost absorption measures, balancing government expectations with operational sustainability.
Source : Dairynews7x7 Oct 22nd 2025 CNBC TV 18