Union minister for food and processing industries Chirag Paswan on September 11 urged the industry leaders to ensure the benefits of GST rate rationalisation are passed on equitably across the value chain, from farmers and MSMEs to consumers.
"Urge industry to now pass on the rate cut benefits. We all have to work towards it," the minister said during an event.
While addressing CEOs of food processing sector at a CII-roundtable event, Paswan said that the government is committed to create an enabling environment for investment, innovation, and inclusive growth across the food processing sector, said an official statement.
Quoting the Prime Minister Narendra Modi's vision of “reform, perform and transform”, the minister emphasised how the goods and services (GST) reforms have rationalised the tax structure, corrected long-standing anomalies, and created fresh opportunities for growth, the statement said. 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, it said.
Paswan 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, said the release.
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. Paswan encouraged industry to view the reforms as an opportunity to invest in technology, diversify product offerings, and expand into global markets, the release noted.
At the CII-roundtable, 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.
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, the release said.
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