Food processing sector poised to witness greater consumer affordability

The Ministry of Food Processing Industries (MoFPI), in collaboration with the Confederation of Indian Industry (CII), yesterday, convened an exclusive interaction with leading CEOs from the food processing sector. The roundtable, chaired by Chirag Paswan, Minister of Food Processing Industries, provided an important platform for open dialogue between government and industry stakeholders. Business leaders from companies including Amul, Britannia, Coca-Cola, Dabur, DS Group, ITC, PepsiCo, Rasna, Mars, Orkla Foods, Mondelez, Bisleri, Cremica Foods, Mrs. Bector, Srinivasa Farms, Hyfun Foods among others, voluntarily pledged to pass on the benefits of GST rate reductions to consumers. They also committed to sensitising smaller enterprises across the ecosystem, ensuring farmers receive better value, and advancing the goals of import substitution and Make in India. Industry captains noted that the reforms would not only lower prices but also stimulate demand, ultimately driving growth across the sector. The discussions focused on the recently announced Next-Generation GST Reforms, which rationalize the tax structure into a simplified two-slab system of 5% and 18%. These reforms, aimed at reducing complexity, addressing inverted duty structures, and enhancing ease of doing business, are expected to significantly benefit the food processing ecosystem. With key staples, dairy, bakery, and packaged food products now under the 5% or nil tax bracket, the sector is poised to witness greater consumer affordability, improved liquidity for enterprises, and stronger competitiveness in domestic and global markets.