GST Cuts to Boost Demand for Processed Foods: Adani Wilmar CEO

GST rate reductions have boosted India's processed food sector, according to Adani Wilmar CEO Angshu Mallick. Margarine, soya nuggets, jams, and jellies have seen sharp cuts, benefiting bakeries, ice cream makers, and consumers. While edible oil volumes may remain stable, Mallick expects strong momentum in soya-based products and margarine as consumers respond to lower prices. Rural India is expected to see a significant uplift from the tax cut.

The recent GST rate reductions have significantly boosted India's processed food sector, according to Adani Wilmar CEO Angshu Mallick. The government's decision to cut GST rates on various goods and services has led to a cascading effect, benefiting both businesses and consumers. This article explores the impact of these changes on the processed food sector, particularly focusing on margarine, soya nuggets, jams, and jellies.

Impact on Margarine, Soya Nuggets, Jams, and Jellies

The GST rate reductions have led to a sharp cut in the prices of margarine, soya nuggets, jams, and jellies. This has resulted in a positive response from consumers, particularly in rural areas. The lower prices are expected to drive demand for these products, benefiting both the manufacturers and the consumers. According to Mallick, the rural sector is expected to see a significant uplift from these tax cuts.

Bakeries and Ice Cream Makers

The reduced prices of margarine, soya nuggets, jams, and jellies are also benefiting bakeries and ice cream makers. These businesses are likely to see an increase in their revenue as consumers respond to the lower prices of these ingredients. This could lead to a boost in the overall processed food industry, as these ingredients are widely used in various food products.

Edible Oil Volumes and Soya-Based Products

While edible oil volumes may remain stable, Mallick expects strong momentum in soya-based products and margarine. The lower prices of these products are likely to drive demand, as consumers seek more affordable options. This could lead to an increase in the production and consumption of soya-based products and margarine.

Conclusion

The GST rate reductions have had a positive impact on India's processed food sector. The reduced prices of margarine, soya nuggets, jams, and jellies have benefited both businesses and consumers, particularly in rural areas. The overall sector is expected to see a boost in demand and revenue, as consumers respond to the lower prices of these products. The government's decision to cut GST rates has proven to be a significant step towards boosting the processed food industry in India.

References

[1] https://timesofindia.indiatimes.com/business/india-business/heres-how-cuts-will-reach-consumers-by-sept-22/articleshow/123708925.cms
[2] https://www.business-standard.com/industry/agriculture/gst-rate-cuts-to-boost-demand-in-india-s-19-trillion-dairy-sector-govt-125090401184_1.html