Hatsun Agro chairman: GST cut to drive dairy sector growth, exports

Hatsun Agro Product Limited anticipates a significant boost for the dairy industry following a proposed reduction in GST on dairy products from 12% to 5%. Chairman R.G. Chandramogan stated in an interview that this cut would increase demand, benefit farmers through better payments, and position India as a global dairy export powerhouse. He highlighted that currently, up to 73% of the payment for products like ice cream is paid as GST.

Chandramogan projects a 100% meaningful increase in demand and improved production. He expects Hatsun Agro to achieve 15% growth for the first half of the year, with the second half expected to be even better due to the initiation of export activities to about eight countries. The company believes that the GST reduction will lead to increased cash flow for farmers, who will then spend on other commodities.

The chairman also expressed doubt about US dairy product entry into India due to consumer preferences and the need to protect local farmers' interests, suggesting New Zealand poses a greater threat. Overall, Hatsun Agro foresees a glorious next year for the dairy sector due to these reforms, fostering better operating leverage and cash flow.