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New Delhi: The Centre on Thursday met with CEOs of top packaged food companies to discuss issues around taxation and government subsidies in the sector. The meeting was held on the sidelines of World Food India 2024, a four-day industry event for the packaged foods industry.<\/p>\n<\/div>\n
Commerce minister Piyush Goyal chaired the roundtable discussion with representatives of ITC, Tata Consumer Products, PepsiCo India, Britannia Industries, Kellanova, Haldiram\u2019s, and LT Foods, among others.<\/p>\n<\/div>\n
He was joined by Union food processing minister Chirag Paswan, and Ravneet Singh Bittu, minister of state for food processing.<\/p>\n<\/div>\n
The topics covered at the roundtable included government subsidies, concerns around production-linked incentive schemes in the sector, taxation dynamics, trade matters such as imports of certain ingredients, and regulatory challenges; it was attended by more than 100 industry executives.<\/p>\n<\/div>\n
The event was also attended by senior officials from various central ministries and state governments.<\/p>\n<\/div>\n
Industry leaders raised concerns around ease of doing business, taxation, misleading advertisements, imports of certain foods, etc. The government has acknowledged these issues and will work with relevant departments to find solutions.<\/p>\n<\/div>\n
\u201cThe goal is to ensure there is no communication gap between the ministry and the industry,\u201d Paswan said, speaking to mediapersons on the sidelines of the event.<\/p>\n<\/div>\n
He emphasized the government’s commitment to supporting the growth of India’s food processing sector. \u201cOne thing is clear\u2014our prime minister and I believe that food processing is the future of India. So how we make take it to a global platform and, at a domestic level, how do we also strengthen it especially when our country is a farmer-rich country,\u201d he said.<\/p>\n<\/div>\n
Paswan added that suggestions and solutions were given on some issues, and discussions were held on other areas.<\/p>\n<\/div>\n
One specific area of concern voiced at the discussion was the goods and services tax (GST). Paswan assured that the ministry would advocate for their interests at the GST Council. However, the final decision on GST matters rests with the council, he added.<\/p>\n<\/div>\n
Companies have often raised concerns over high taxes on packaged foods and drinks in India. Recently, the GST rate of extruded snacks was reduced from 18% to 12% and brought on a par with namkeens and mixtures.<\/p>\n<\/div>\n
India’s packaged consumer food market, including dairy, biscuits, snacks and sweets, baked products, ready-to-eat meals, among others, is valued at \u20b9<\/span>4.24 trillion, according to a 2024 report by brokerage Anand Rathi.<\/p>\n<\/div>\n Several large homegrown and international companies are invested in the market. Over the past few years, the packaged foods sector has attracted investments as well as seen a flurry of mergers and acquisitions as companies capitalize on the growing demand for such foods.<\/p>\n<\/div>\n World Food India 2024, a four-day event, serves as a platform for India’s top food and beverage companies, government representatives, and industry experts.<\/p>\n<\/div>\n<\/div>\n Catch all the Business News, Politics news,Breaking NewsEvents andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.<\/p>\n