What Price Cuts Has Milma Introduced for Dairy Products?
Click to start listening
Synopsis
In a significant move, Milma has slashed prices on nearly 100 dairy products, providing relief to consumers in Kerala. This change results from the recent GST revision, making essential items like ghee, butter, and ice creams more affordable. Discover how these adjustments are set to impact the dairy market and benefit local households.
Key Takeaways
- Significant price cuts on Milma's dairy products
- GST revisions lead to lower consumer costs
- Ghee, butter, and paneer prices reduced
- Impact on consumer confidence and sales
- Milma strengthens its position in the dairy market
Thiruvananthapuram, Sep 21 (NationPress) The Kerala Cooperative Milk Marketing Federation (KCMMF), commonly referred to as Milma, has revealed significant price reductions on almost 100 of its value-added dairy offerings, providing much-needed relief to consumers throughout the state.
This price adjustment follows the recent revision of Goods and Services Tax (GST) rates by the Union government, with the new pricing set to commence from Monday.
The most prominent cut is on ghee, a vital component in many Kerala kitchens. A one-litre pack of Milma ghee will now be priced at Rs 675, reduced from Rs 720, while the 500-ml pack will drop from Rs 370 to Rs 345. This change is a direct result of the GST on ghee being lowered from 12 percent to 5 percent.
In addition, the cost of butter has been adjusted from Rs 240 to Rs 225, and the price of paneer (500 gm) has decreased by Rs 11 to Rs 234, following the complete withdrawal of GST on paneer. Desserts will also see notable price drops; for example, a litre of vanilla ice cream will now be available for Rs 196 instead of Rs 220, thanks to the GST reduction from 18 percent to 5 percent.
Other favored products like flavoured milk, UHT milk, packaged juices, and payasam mixes are also expected to become more affordable due to these tax modifications. Flavoured milk will now incur only 5 percent GST instead of 12 percent, UHT milk will be free from GST, and payasam mix will witness a decrease from 18 percent to 5 percent.
Milma Chairman K.S. Mani stated that the federation is dedicated to ensuring that consumers fully benefit from the revised tax structure.
“These changes mean ghee, butter, and paneer will be approximately 7 percent cheaper, while ice creams will see price reductions of 12 to 13 percent. The revamped tax system not only alleviates consumer expenses but also enhances the competitiveness of primary milk cooperative societies,” he mentioned.
This decision is anticipated to boost consumer confidence and enhance sales within Milma’s value-added range, which includes essential dairy products and ready-to-use options, especially popular during the festival period. Officials believe these cuts will help Milma solidify its market presence in Kerala’s competitive dairy landscape while reinforcing its commitment to being a consumer-friendly cooperative.
Point of View
It is crucial to recognize the impact of Milma's price reductions on consumer welfare and market dynamics. This initiative reflects the cooperative's commitment to its consumers, ensuring that essential dairy products remain accessible amidst changing economic conditions. It’s a strategic move that not only boosts consumer confidence but also strengthens Milma's position in a competitive market.
NationPress
22/09/2025
Frequently Asked Questions
What are the new prices for ghee and butter?
The new price for a one-litre pack of Milma ghee is Rs 675, down from Rs 720. Butter has been reduced from Rs 240 to Rs 225.
When will the new prices take effect?
The revised prices will come into effect starting Monday.
How does the GST revision affect dairy products?
The GST on ghee has been lowered from 12% to 5%, and the GST on paneer has been completely withdrawn, leading to significant price reductions.
What other products are seeing price cuts?
Flavoured milk, UHT milk, packaged juices, and payasam mixes will also become cheaper due to the revised GST rates.
What impact will these price adjustments have on consumers?
These price cuts are expected to boost consumer confidence and enhance sales of Milma's value-added dairy products.
