4% to 6% price drop for Uthukuli butter & ghee following GST revision

FOLLOWING GST reduction from 12% to 5% for products like butter and ghee, prices have come down in Uthukuli, a hub for their production in Tamil Nadu. Manufacturers have said the prices will decrease further after the festival season. Currently, the price drop ranges from 4% to 6% across farms in the region.

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This generational industry in Uthukuli is seeing a drop in the number of companies involved in butter and ghee production. Existing manufacturers have been blaming low profit, previous GST reforms from nil to 12%, manpower shortage, etc. Additionally, they have been continuously requesting the central and state governments to take appropriate steps to remove GST completely to revive the industry.