Shares of Hatsun Agro Product Ltd were in focus on Thursday, September 4, rising 2.85% to ₹926 after the GST Council’s latest reforms slashed tax rates on several dairy and milk products.
GST relief for dairy sector
Under the new GST structure, which will take effect from September 22, key dairy products have seen sharp tax reductions:
-
UHT milk – cut from 5% to 0%
-
Butter, ghee, and cheese – reduced from 12% to 5%
-
Paneer – brought down from 5% to 0%
The move is expected to lower costs for consumers while boosting demand for packaged dairy products across India.
Stocks in focus
The tax cuts directly benefit listed dairy firms such as Hatsun Agro, Heritage Foods, Parag Milk, Dodla Dairy, Umang Dairies, and Nestle India (through its value-added dairy portfolio). FMCG majors including Britannia (cheese, butter) and ITC (dairy beverages) are also likely to see improved margins and higher consumer demand.
Market outlook
Analysts believe the GST relief is a strong positive for the dairy value chain, particularly for organized players, as it enhances affordability and encourages formal sector consumption. Investors will be closely tracking the upcoming quarterly earnings of these companies to gauge the impact of the reduced tax structure.