Prices of Saras Butter and Paneer may drop:Ghee could be cheaper by ₹38 per litre know the new rates if GST reduction is approved

The Rajasthan Co-operative Dairy Federation (RCDF) has increased the price of Saras ghee by ₹30 per litre from Tuesday. Earlier, the prices of ghee were reduced by up to ₹37 per litre after the Goods and Services Tax (GST) rates were lowered. However, just a month later, RCDF has again raised the prices. GST rates were reduced in September On 22 September, the Central Government reduced the GST rate on milk-based products from 12% to 5%. For those items that were earlier taxed at 5%, the rate was reduced to zero. Following this decision, the price of Saras ghee (regular), which was ₹588 per litre till 21 September, came down to ₹551 per litre. Companies benefited more than consumers After the government’s announcement, the reduction in GST was celebrated as a “GST Festival”. It was said that the move aimed to provide relief to consumers. However, instead of passing on the benefits to the public, companies began to retain the profit margin themselves. Product prices returned to old levels Many firms increased the cost of their products in September, while some raised prices in October. This led to a rise in Maximum Retail Price (MRP), bringing product prices back to their earlier levels before the GST reduction. Increase in cost of several food items Not only ghee but other food products such as oil, soap, namkeen, biscuits, and paneer have also seen an increase in cost. Companies have raised the MRP of almost all food products in the market. ​