Thiruvananthapuram, Jul 17 (IANS): With the Goods and Services Tax (GST) hike of 5 per cent on packed food products from Monday, milk and other allied products including lassi, ghee and curd, will cost more.

The Kerala state Milk Marketing Federation (MILMA), which is a major provider of packet milk of 500 ml in the state, will increase the price of the products. MILMA Chairman K.S.Mani told mediapersons that the exact hike in prices of packed Milk products will be announced on Monday.

It may be noted that Milma charges 23 Rs for a 500 ml pack and the increase in the price will be a major blow to the consumers who are largely depending on the state government-supported cooperative for the needs of milk in the state.

Rice and other food products, including cereals and pulses that come in packets, will also be charged higher from Monday onwards. Earlier, GST was levied only on branded food products but with the GST council, including all packed food products, rice and other cereals and pulses of non-branded varieties will also be increased.

The cost of packet rice is expected to increase by a minimum of Rs 3 per kilogram from Monday onwards.

Sumesh Chandran, an autorickshaw driver at Thiruvananthapuram, while speaking to IANS said: "With the increase in petrol and diesel prices, the transport industry is facing a slump and we earn less than what we were getting earlier. Coupled with this, the increase in prices of essential commodities including rice and milk is giving us a body blow. I don't know why our political leaders including the state finance minister kept a studied silence when the Central government was increasing the GST rates for packed food products."