Chirag Paswan calls for GST rationalization, raising food regulations to global standards

Chirag Paswan, minister of food processing industries

The food processing industries ministry is in constant touch with the finance ministry with respect to rationalisation of GST rates of key food, packaged food and other items relevant to the food processing sector, Chirag Paswan, minister of food processing industries (MoFPI) said on July 23.

"We’re constantly talking to finance ministry. We’ve forwaded the requests of FPI stakeholders to them, as there an urgent need to relook at the GST rates of several items – relevant for the industry," Paswan said, while responding to a query of Moneycontrol.

"I don’t want to name any A, B, C item…a massive overhaul of rates is necessary. We know the GST Council has to take a final call, but there is a need for rationalisation (of rates)," Paswan added. The minister was speaking at the World Food India 2025 curtain raiser event in New Delhi.

The GST Council is likely to meet after the Parliament’s monsoon session, where the rate rationalisation of about 150 items (including packaged food) may be discussed, according to sources.

On regulations concerning the FPI sector, the minister said that there is need to enhance the regulatory regime of Food Safety and Standards Authority of India (FSSAI), and match with international standards.

"Eventually, we wish to see that Indian regulatory standards are recognized as global standards. We have seen a few examples that because of so and so reasons, Indian products are not accepted in foreign countries…we don’t want that to happen," Paswan told while responding to Moneycontrol. To cite an example, few popular Indian brand instant noodles are banned in some European countries, he said.

Meanwhile, while addressing the event, Paswan said that the central government’s aim to increase the consumption of processed food in the country, while making sure that safety of consumers in not compromised. "FSSAI has to ensure that no food which is unsafe to eat in on the table of any consumer."

The minister also said that today less 10% of total agriculture produce is used in the food processing sector, which needs to be increased. "The FPI sector has the ability to increase the income of farmers," he added.