MUMBAI, 10 September 2025: Hatsun Agro Product Limited has welcomed the recent Goods and Services Tax (GST) reforms in the dairy sector, describing them as a significant step towards affordability, rural empowerment, and industry formalisation.
The company said that lower GST rates on key dairy categories would make milk and milk-based products more accessible to consumers, provide better returns for farmers, and create a level playing field for the organised industry.
“This is an unprecedented and visionary reform. For the dairy industry, the reduction of GST across categories including milk products and ice cream is truly a blessing,” said R.G. Chandramogan, Chairman, Hatsun Agro Product Ltd.
Chandramogan added that the reform would strengthen the organised supply chain, reduce adulteration, and support India’s transition from an import-dependent dairy market to a potential global exporter.
According to the company, the decision directly impacts a large section of India’s population, as milk is an integral part of the rural economy and nutrition cycle. Nearly 80 million milk producers and 1.45 billion consumers are expected to benefit from the reform.
Key benefits outlined
- Consumers: Lower taxes will make packaged dairy products more affordable and improve access to safe, quality nutrition.
- Farmers: Improved milk prices are expected to enhance rural incomes and support livelihoods.
- Industry: A uniform GST slab across branded and unbranded products will encourage transparency, reduce market distortions, and promote formalisation.
- Economy: The organised dairy sector is likely to expand, spurring demand, strengthening food security, and enhancing India’s competitiveness in dairy exports.
Hatsun Agro noted that the reform would not adversely affect government revenues, as stronger demand and a shift towards packaged dairy products are expected to balance collections over time.
