FNB News - Industry titans pledge to pass on GST benefits to consumers

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FOOD PROCESSING

Industry titans pledge to pass on GST benefits to consumers

Saturday, 13 September, 2025, 12 : 00 PM [IST]

Our Bureau, New Delhi

The Ministry of Food Processing Industries (MoFPI), in collaboration with the Confederation of Indian Industry (CII), 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. The interaction commenced with a vote of thanks from industry representatives to Prime Minister, Finance Minister, and Food Processing Minister for spearheading the landmark GST reforms.

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 rationalise 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.

In his keynote address, Paswan reaffirmed Government’s commitment to creating an enabling environment for investment, innovation, and inclusive growth across the food processing sector. He urged industry leaders to ensure that the benefits of GST rationalisation are passed on equitably across the value chain, from farmers and MSMEs to consumers.

Quoting Prime Minister’s vision of ‘Reform, Perform, and Transform’, the minister emphasised how the GST reforms have rationalised the tax structure, corrected long-standing anomalies, and created fresh opportunities for growth. He underlined that food processing is among the biggest beneficiaries of the reforms, calling it a transformative step for a sector that has the potential not only to drive value addition but also to reduce India’s dependence on imports.

The minister stressed that the objective of the interaction was to step up collective responsibility for the smooth implementation of GST reforms. He called upon industry to actively work towards passing benefits to consumers, enhancing product quality, formalising the unorganised sector, and ensuring greater income security for farmers. He urged CEOs to share their issues and bottlenecks candidly so that government and industry can work together towards timely resolution. Reiterating the importance of trust and intent, he said, “With honest intent and sincere commitment, let us perform with dedication and together realise the vision of Viksit Bharat.”

Highlighting India’s global standing as the largest producer of several agricultural commodities, the minister noted that low levels of value addition remain a challenge. He encouraged industry to view the reforms as an opportunity to invest in technology, diversify product offerings, and expand into global markets.

In his address, A P Das Joshi, secretary, MoFPI, highlighted the significance of the reforms in rationalising the tax structure and enhancing ease of doing business. He stressed the importance of industry feedback in ensuring smooth implementation and called for collective efforts to disseminate accurate information across associations and enterprises nationwide. He further encouraged the sector to prioritise innovation and value addition as the key drivers of future growth.

Industry leaders shared their perspectives on opportunities in exports, product diversification, and technology adoption, while also flagging areas requiring further facilitation. The session concluded with a reaffirmation of government- industry partnership to unlock the sector’s full potential.