GST Reforms: Boosting Growth and Competitiveness for dairy in AP

Ranked 4th nationally in milk production, the state supports 24 lakh farmers, many of them women in self-help groups and cooperatives. Major brands like Heritage and Vijaya anchor collection, chilling, processing and retail networks across the state.

With GST reduced from 5% to 0% on UHT milk and paneer, from 12% to 5% on ghee and butter, and from 18% to 5% on ice-cream, processed dairy products are now 5–7% cheaper. This will lower household costs, boost festive-season demand, and strengthen income opportunities for dairy farmers and SHG-led cooperatives in districts such as Krishna, Srikakulam, West Godavari, East Godavari, Guntur, Chittoor and Vizianagaram.

Andhra’s dairy market, valued at ₹713.9 billion in 2024, is projected to nearly double by 2033, making these tax cuts especially timely for a rapidly expanding sector.

Source : DAirynews7x7 Feb 27th 2026 PIB