Haryana Cabinet reduces interest rate on milk cess from 24 percent to 12 percent to provide relief to dairy industry

5 Dariya News

Chandigarh 25-Mar-2025

In a significant move aimed at boosting the state's dairy sector, the Haryana Cabinet, chaired by Chief Minister Sh. Nayab Singh Saini, has approved an amendment to the Sub Rule (1) and (2) of Rule 21 of the Haryana Murrah Buffalo and other Milch Animal Breed Rules, 2002. 

The decision will reduce the interest on delayed milk cess payments, including penalties, from 2% compound interest per month (24% per annum) to 12% simple interest per annum. Haryana Milk Plant Association and milk plant owners had requested the government and sought a revision of the existing rules to ease the financial burden of milk plants across the state. 

The amendment will make a significant difference by reducing the financial pressure on milk processing industries, ensuring smoother operations, and fostering growth in the dairy sector. Under the new provisions, any delayed payment of fees or cess—along with any penalties—will attract simple interest at the rate of 12% per annum, starting from the due date of payment. 

The defaulting amount will only be considered to have been paid after both the principal amount and the interest have been paid. This amendment is set to provide a major fillip to the dairy industry, enhancing the operational ease for milk plants and supporting Haryana’s position as a key player in the milk processing industry.