Hatsun Agro Product Limited Chairman, R G Chandramogan, has expressed optimism about the potential impact of proposed GST rate changes on dairy products in a recent interview with NDTV Profit. The proposed reduction in GST rates from the current 12% (and up to 18% on ice cream) to a flat 5% rate is expected to have far-reaching effects on the dairy industry and Hatsun Agro's business prospects.

Potential Impact of GST Rate Cut

Chandramogan highlighted several key benefits of the proposed GST reduction:

1. Boosting Demand: The chairman expects the rate cut to significantly increase demand for dairy products in the domestic market.

2. Improving Export Competitiveness: The reduced tax burden is anticipated to make Indian dairy products more competitive in the global market.

3. Benefiting Farmers: Lower GST rates are expected to enable better payments to farmers, potentially increasing milk production.

4. Bridging Urban-Rural Gap: Improved cash flow for farmers could lead to increased spending on other commodities, potentially narrowing the urban-rural economic divide.

Export Opportunities

Chandramogan emphasized the untapped export potential for Indian dairy products. He stated, "India is a country with 240 million tons of production, but still our exports are hardly 1 million versus 20 million tons of New Zealand." The chairman believes that with the GST reduction, India could become a "powerhouse" in dairy exports.

Hatsun Agro is already exporting ice cream to eight countries and expects exports to increase. Chandramogan expressed confidence that the company would see immediate benefits from the proposed tax cut, stating, "Second half itself the export will start happening because we are already exporting our own ice cream to about eight countries and we are gaining momentum."

Financial Performance and Outlook

While Hatsun Agro reported weaker-than-expected Q1 performance with 9% revenue growth against 15% guidance, Chandramogan remains optimistic about the company's prospects:

• The company expects to achieve 15% growth for H1.
• Management anticipates better performance in H2.
• The chairman describes the next fiscal year as potentially 'glorious'.

Industry-wide Impact

Chandramogan believes the GST reduction will have a three-pronged positive effect:

1. Better for consumers due to potentially lower prices
2. Improved income for farmers
3. Increased export opportunities

He also expressed doubt about the threat of US dairy imports to the Indian market, citing differences in feeding practices and consumer preferences. However, he acknowledged that New Zealand could pose a more significant competitive threat if imports were to increase.

In conclusion, Chandramogan's comments reflect a highly optimistic outlook for both Hatsun Agro and the Indian dairy industry, contingent on the implementation of the proposed GST rate cut. The company appears well-positioned to capitalize on both domestic growth and expanding export opportunities in the coming years.

RG Chandramogan, Chairman of Hatsun Agro Product , has made a compelling case for reducing the Goods and Services Tax (GST) on dairy products, arguing that such a move could significantly transform India's dairy industry and position the country as a global dairy export leader.

GST Reduction Proposal

Chandramogan proposed a uniform 5% GST rate on all dairy products, including ice cream, to replace the current multi-tier structure of 5%, 12%, and 18%. He specifically advocated for reducing the GST on dairy products from 12% to 5%, stating that this change could empower farmers, spur demand, and enhance India's export potential in the dairy sector.

Current Export Scenario

The Hatsun Agro chairman highlighted the stark contrast between India's milk production and its dairy exports:

• India produces 240 million tonnes of milk annually
• However, it exports only one million tonnes
• In comparison, New Zealand exports 20 million tonnes, representing 35% of global dairy trade

Chandramogan attributed this significant export gap primarily to heavy taxation, particularly the 12% GST on products like ghee.

Anticipated Benefits of GST Reduction

The proposed GST reduction is expected to yield several benefits:

1. Better consumer prices
2. Higher earnings for farmers
3. Increased export potential

Future Outlook

Expressing optimism about Prime Minister Modi's announcement regarding next-generation GST reforms expected by Diwali, Chandramogan predicted:

• The second half of FY26 could show improvement
• The following year could be "glorious" for the industry

Trade Negotiations and Competition

Regarding international trade, Chandramogan:

• Expressed doubt about US dairy products entering the Indian market, citing differences in feeding practices and consumer preferences
• Identified New Zealand as a more significant competitive threat in the global dairy market

Stock Performance

Hatsun Agro shares closed 0.27% lower at ₹910.00 on the NSE.

Recent Company Update

According to a recent corporate filing, Hatsun Agro Product Limited announced that Mr. R G Chandramogan, Chairman of the Company, gave an interview to NDTV Profit on August 21, 2025. The company has made the video link of this interview available on their website at https://www.hap.in/video.php , in compliance with SEBI regulations. The transcript of the interview is expected to be available by August 27, 2025.

This recent media appearance by the Chairman underscores the company's commitment to transparent communication with its stakeholders and highlights the ongoing discussions about the dairy industry's future in India.