Today, ‘ghee’ is not a product of livestock, is baseless, and bereft of any logic. The contrary argument that ‘ghee’ is indeed a product of livestock is logically sound. Livestock has been defined under Section 2(v) of the Act, where cows and buffalos are the livestock. Undisputedly, ‘ghee’ is a product of milk, which is a product of livestock,” a bench comprising Justice Sudhanshu Dhulia and Justice SVN Bhatti held.
NEW DELHI: Today (6 March): The Supreme Court of India has reaffirmed that ‘ghee’ falls under the category of livestock products as defined by an Andhra Pradesh law. The court has upheld the State Government’s 1994 notification, granting market committees the authority to impose a fee on the sale and purchase of ‘ghee’.
The case revolved around whether ‘ghee’, clarified butter, should be considered a product of livestock under the provisions of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966.
“The argument that ‘ghee’ is not a product of livestock is baseless and bereft of any logic. The contrary argument that ‘ghee’ is indeed a product of livestock is logically sound. Livestock has been defined under Section 2(v) of the Act, where cows and buffalos are the livestock. Undisputedly, ‘ghee’ is a product of milk, which is a product of livestock,” a bench comprising justices Sudhanshu Dhulia and SVN Bhatti held.
The petitioner contended that ‘ghee’ cannot be considered a product of livestock since cows and buffalos do not produce it directly. However, the court rejected this argument.
The plea was filed by Sangam Milk Producer Company Ltd, challenging an Andhra Pradesh High Court judgment, which upheld the state government’s notification regarding the imposition of fees on ‘ghee’ transactions through market committees.
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In delivering the judgment, Justice Dhulia cited the high court’s decision and highlighted that ‘ghee’ qualifies as a livestock product despite being derived from another dairy product. He stated that even though ‘ghee’ is not directly obtained from milk, it is still considered a ‘product of a product of livestock’.
The Supreme Court concluded that the 1994 notification was valid, and the challenge against it was rightfully rejected by the Full Bench of the Andhra Pradesh High Court.
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Furthermore, the court lifted its interim order that previously restrained market committees from collecting fees on ‘ghee’ transactions.