Hatsun Agro Product

Hatsun Agro Product Limited's Chairman R G Chandramogan discussed the potential impact of proposed GST rate changes on dairy products in an interview. The proposed GST reduction from current rates of 12% (up to 18% on ice cream) to a flat 5% rate is expected to boost demand meaningfully and improve export competitiveness. The company reported weak Q1 FY26 performance with 9% revenue growth versus 15% guidance and margins of 13.9% against expected 14-15%. However, management expects 15% growth for H1 FY26 with better H2 performance, and describes FY27 as potentially 'glorious'. The company currently exports ice cream to 8 countries and sees significant export opportunities, expecting exports to increase from H2 FY26. The GST reduction is anticipated to enable better farmer payments, increase production, and help India become more competitive in global dairy markets. India currently exports only 1 million tons of dairy products compared to New Zealand's 20 million tons, despite India's production of 240 million tons.

RG Chandramogan, Chairman of Hatsun Agro Product, stated that reducing GST on dairy products from 12% to 5% could transform India's dairy industry by empowering farmers, spurring demand, and positioning India as a global dairy export leader. He advocated for a uniform 5% GST rate on all dairy products, including ice cream, replacing the current multi-tier structure of 5%, 12%, and 18%. India produces 240 million tonnes of milk annually but exports only one million tonnes, compared to New Zealand's 20 million tonnes which represents 35% of global dairy trade. Chandramogan attributed this export gap to heavy taxation, particularly the 12% GST on products like ghee. He expressed optimism about Prime Minister Modi's announcement regarding next-generation GST reforms expected by Diwali. The proposed GST reduction is anticipated to deliver better consumer prices, higher farmer earnings, and increased export potential. Chandramogan predicted the second half of FY26 could be better with the following year being glorious. Regarding trade negotiations, he expressed doubt about US dairy products entering India due to different feeding practices and consumer preferences, identifying New Zealand as a more significant competitive threat. Hatsun Agro shares closed 0.27% lower at Rs 910 on the NSE.