Top ministers meet CEOs to sort out taxation, subsidy issues in food processing | Mint

New Delhi: The central government on Thursday held a meeting with CEOs of top packaged food companies to discuss issues related to taxation and government subsidies in the packaged food sector 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 with representatives from ITC, Tata Consumer Products, PepsiCo India, Britannia Industries, Calanova, Haldiram’s and LT Foods, among others.

Union Food Processing Minister Chirag Paswan and Minister of State for Food Processing Ravneet Singh Bittu were also present on the occasion.

Topics covered at the roundtable included government subsidies, concerns related to production-linked incentive schemes in the sector, taxation dynamics, trade matters such as import of certain components, and regulatory challenges; it was attended by over 100 industry executives.

Senior officials from various central ministries and state governments also participated in the programme.

Raising concerns

Industry leaders raised concerns about ease of doing business, taxation, misleading advertisements, import of certain food items, etc. The government has acknowledged these issues and will work closely with the concerned departments to find solutions.

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

He emphasised the Government’s commitment to support the growth of India’s food processing sector. He said, “One thing is clear – our Prime Minister and I believe that food processing is the future of India. So how can we take it to the global platform and domestically, how can we strengthen it, especially when our country is rich in farmers.”

Paswan said that suggestions and solutions were given on some issues and other areas were discussed.

A particular area of ​​concern in the discussion was the Goods and Services Tax (GST). Paswan assured that the ministry would advocate their interests in the GST Council. However, the final decision on GST matters rests with the Council, he said.

Companies have often raised concerns about high taxes on packaged foods and beverages in India. Recently, the GST rate for extruded snacks was reduced from 18% to 12% and brought at par with namkeen and mixtures.

Packaged Consumer Food Market

India’s packaged consumer food market, which includes dairy, biscuits, snacks and sweets, baked products, ready-to-eat meals, etc., is assessed. According to a 2024 report by brokerage firm Anand Rathi, this amount will be $4.24 trillion.

Many large domestic and international companies have invested in this market. Over the past few years, the packaged foods sector has attracted investments and has also seen a flurry of mergers and acquisitions as companies seek to capitalise on the growing demand for such foods.

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