Just 5 days after GST cut, Vita hikes ghee prices

Even as the reduction in GST rates recently brought down the rates of some essential commodities, driving the government to launch the nationwide Savings Festival, Vita — a cooperative society under the government — took a dramatic turn on the rate of ghee.

Sources said after reducing the prices on September 22, Vita increased the prices five days later. The GST on ghee, butter, cheese and dairy spreads was reduced from 12 per cent to 5 per cent, which should have brought down the price of a litre of ghee by around Rs 42 (on a Rs 600 pack). However, Vita passed on only partial relief, reducing a 1-litre ghee pack by Rs 20 and a 15-litre tin by Rs 300.

On September 27, it again hiked the prices. A litre pack now is costlier by Rs 20, and the price of a 15-litre tin has gone up by Rs 290. It puts the prices nearly at the pre-GST cut level, leaving the consumers high and dry during festive season, despite the much-hyped GST cut for festive savings.

The CEO of the Vita plant in Jind, Narender Dhania, said the product prices were decided at its headquarters in Panchkula. He claimed that the prices of milk, ghee, yogurt, cheese, and butter fluctuate depending on market demand and availability. The other companies had raised the prices in August, and Vita had to follow suit to ensure fair compensation to milk sellers.