KMF’s Nandini Ghee Price Jumps to ₹700 per Litre After GST Relief; Consumers Disappointed

The Karnataka Milk Federation (KMF) has once again revised the price of Nandini Ghee, increasing it by ₹90 per litre. The sudden hike follows a recent period of reduced prices after the GST cut, which had briefly offered relief to consumers.

According to officials, the surge in demand for ghee during the festive season has been a major factor behind the latest price increase. With the revision, Nandini Ghee now costs ₹700 per litre - up from ₹610 before the GST rate adjustment.

Revised Prices Across Packs

The new rates are effective immediately. As per KMF's updated pricing list:

50 ml pack - ₹47

100 ml pack - ₹75

200 ml pack - ₹155 to ₹165

500 ml pack - ₹350 to ₹360

1 litre pack - ₹700 to ₹720

From GST Relief to Price Hike

In 2017, the Goods and Services Tax (GST) was imposed on dairy products. Over the years, the tax burden increased, and by 2022, the GST rate on ghee had gone up to 22%. However, in September this year, the Centre reduced the GST on dairy products from 12% to 5%, effective from September 22.

Following the reduction, state-level cooperatives like KMF were directed to pass on the benefit to consumers, leading to a temporary price cut of ₹40 per litre in Nandini Ghee.

Despite the GST relief, KMF cited global market trends and increased production costs for the latest price hike. "The new prices reflect both domestic and international market conditions," a KMF official confirmed.

The decision comes just ahead of the festive period, when the demand for ghee - a key ingredient in traditional sweets and offerings - typically peaks.

Consumers will now have to bear the higher cost as the revised prices have already come into force across Karnataka.