GST cuts to aid Karnataka farmers, MSMEs
Government officials announced on Friday that goods and services tax changes will reduce expenses for Karnataka producers of coffee, dairy products and cashews. The reforms lower levies on instant coffee, paneer, processed nuts and handicraft items with projected retail decreases between 5 and 12 percent. Karnataka supplies 71 percent of Indian coffee from districts such as Kodagu and Chikkamagaluru, where small processors expect improved profit margins.
Tax adjustments eliminate charges on ultra-high temperature milk and paneer while cutting rates on ghee and butter from 12 to 5 percent. These modifications benefit 26 lakh dairy farmers connected to Karnataka Milk Federation through cooperative societies. Cashew processing centers in coastal areas will see nut prices drop 6 to 7 percent, helping thousands of women workers in Dakshina Kannada and Udupi.
The reforms decrease costs for agricultural equipment, handloom textiles and domestically manufactured drones by up to 20 percent. Fishing products such as canned tuna and frozen shrimp become cheaper through the tax restructuring that strengthens export competitiveness. Traditional crafts like Bidriware metalwork and Mysore rosewood inlay art benefit from the reduced tax framework.
