Big Food CEOs Promise to Pass GST Savings to Consumers
In a key meeting in New Delhi, top bosses from major food companies stepped up on Thursday to voluntarily commit to sharing the perks of recent GST rate cuts directly with everyday shoppers. This move comes as part of India’s push to make food more affordable through smart tax reforms.
The gathering, organized by the Ministry of Food Processing Industries along with the Confederation of Indian Industry (CII), saw lively discussions under the leadership of Minister Chirag Paswan. It brought together government officials and industry heavyweights to talk openly about boosting the food sector.
These leaders didn’t stop at just lowering prices. They pledged to educate smaller businesses in the supply chain, help farmers get better returns, and support big initiatives like import substitution and the Make in India campaign. As one industry expert put it, these GST changes will not only cut costs but also spark more demand, fueling overall growth in food processing.
At the heart of the talks were the fresh Next-Generation GST Reforms. These simplify the tax system into just two slabs: 5% and 18%. The goal? To fix complicated rules, sort out inverted duty issues, and make business easier for everyone involved.
Everyday items like staples, dairy products, bakery goods, and packaged foods now fall under the 5% or zero-tax category. This means shoppers can expect cheaper prices, companies get better cash flow, and the whole food processing ecosystem gains a competitive edge both at home and abroad.
In his speech, Minister Paswan doubled down on the government’s promise to foster investment, spark innovation, and drive growth that includes everyone in the food processing sector. He urged CEOs to spread these GST benefits fairly—from farmers and small businesses to end consumers.
Drawing from Prime Minister Narendra Modi’s mantra of "Reform, Perform, and Transform," the minister highlighted how these GST reforms fix old tax glitches and open new doors for progress. He called food processing one of the top winners, a game-changer that adds value to farm produce and cuts India’s reliance on imports.
The minister made it clear: this meeting aimed to ramp up teamwork for rolling out the GST reforms smoothly. He pushed industry players to pass on savings to buyers, improve product quality, bring informal sectors into the fold, and secure steady incomes for farmers.
Pointing to India’s top spot as the world’s biggest producer of many farm goods, Paswan noted the challenge of low value addition. He encouraged businesses to seize this moment for tech upgrades, new product lines, and cracking global markets.
CEOs shared insights on export boosts, diversifying offerings, and embracing new tech, while pointing out spots where government help could make a difference. The event wrapped up with a strong nod to closer government-industry ties to unleash the sector’s true power.
On a exciting note, the Ministry revealed plans for the 4th World Food India event, set for September 25-28, 2025, at Bharat Mandapam in Delhi. As India’s go-to global hub for food processing, it promises B2B and B2G meetings, roundtables, exhibitions, buyer-seller interactions, and tons more—perfect for forging investments, ideas, and partnerships in the industry.
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