Top ministers meet CEOs to discuss tax and subsidy issues in food processing | Mint

New Delhi: The Centre on Thursday met CEOs of leading packaged food companies to discuss issues surrounding taxes and government subsidies in the sector. The meeting was held on the sidelines of World Food India 2024, a four-day industry event for the packaged food industry.

Commerce Minister Piyush Goyal chaired the roundtable discussion which included representatives from ITC, Tata Consumer Products, PepsiCo India, Britannia Industries, Kellanova, Haldiram's and LT Foods.

He was accompanied by Food Processing Minister Chirag Paswan and Ravneet Singh Bittu, Minister of State for Food Processing.

Topics discussed at the roundtable included government subsidies, concerns about production-related incentives in the sector, tax dynamics, trade issues such as the import of certain ingredients, and regulatory challenges. . than 100 industry executives were present.

Senior officials from various central ministries and state governments were also present at the event.

Expressing concerns

Industry leaders expressed concerns over ease of doing business, taxes, misleading advertising, import of certain food products, etc. The government has acknowledged these issues and will work with relevant departments to find solutions.

“The aim is to ensure that there is no communication gap between the ministry and the industry,” Paswan said, speaking to media persons on the sidelines of the event.

He stressed the government's commitment to support the growth of India's food processing sector. “One thing is clear: our Prime Minister and I believe that food processing is the future of India. So how we take it to a global platform and, at the national level, how we also strengthen it, especially when our country is a country with a lot of farmers,” he said.

Paswan added that suggestions and solutions were given on some points and discussions took place on other issues.

One particular concern raised during the discussion was the Goods and Services Tax (GST). Paswan assured that the ministry would advocate its interests before the GST Council. However, the final decision on GST matters lies with the council, he added.

Businesses have often expressed concerns about the high taxes on packaged food and beverages in India. Recently, the GST rate on extruded snacks was reduced from 18% to 12% and made equal to namkeens and blends.

Packaged consumer food market

The Indian packaged consumer food market, which includes dairy products, biscuits, snacks and sweets, baked goods, ready meals and more, is valued at ₹4.24 trillion, according to a 2024 report by brokerage firm Anand Rathi.

Several large domestic and international companies are investing in the market. In recent years, the packaged food sector has attracted investment and seen a flurry of mergers and acquisitions as companies capitalize on the growing demand for such foods.

World Food India 2024 is a four-day event that serves as a platform for India's top food and beverage companies, government representatives and industry experts.