The Maharashtra Government today announced that it would recommend the Union Government a reduction in the Goods and Services Tax (GST) on butter and ghee.
The two products attract a GST rate of 12 per cent at present.
Dairy Development Minister Mahadeo Jankar told the Legislative Assembly here that the government would recommend the Centre to put ghee and butter in a lower tax bracket.
Jankar also announced that milk and milk powder would be provided in the nutritious meals provided under the schemes of the School Education, Women and Child Welfare and Tribal Development Departments.
The government will also provide an "encouragement" subsidy of Rs 50 per kg to milk producers for export of milk powder for the next two months, he said.
Dairies will be given a subsidy Rs 5 per litre for export of milk for the next two months, he said.