GST Cut Could Make India a Dairy Export Powerhouse
R.G. Chandramogan, Chairman of Hatsun Agro Product Ltd., has called for a uniform reduction of GST on all dairy products—from the existing 12% to 5%, including ghee and ice cream. He argues this could dramatically boost India’s dairy industry, empowering farmers, increasing domestic demand, and transforming India into a global exporter. India's annual milk production currently stands at 240 million tonnes, yet dairy exports are only 1 million tonnes—a stark contrast to New Zealand’s exports of 20 million tonnes, which constitute approximately 35% of global dairy trade.
[embed]https://www.youtube.com/watch?v=IKVyumO_q2Y&ab_channel=NDTVProfit[/embed]Chandramogan envisions a tripartite benefit: better consumer prices, higher farmer incomes, and expanded export potential. He expects a revival in FY26, suggesting the latter half of the fiscal could be a turning point—possibly leading to a “glorious” next year. Acknowledging geopolitical dynamics, he doesn’t foresee U.S. dairy entering India significantly due to consumer preferences and dietary differences but identifies New Zealand as a more formidable competitor should imports increase.
Industry Insight
A uniform GST cut across dairy products could serve as a powerful lever to narrow the export gap, improve rural livelihoods, and sharpen India's competitive edge—especially if accompanied by strategic export facilitation and trade diplomacy.
Source : Dairynews7x7 Aug 23rd 2025