Top executives from over 50 food companies, including Britannia Industries Ltd. and ITC Ltd., met with Union Commerce and Industry Minister Piyush Goyal and Union Minister of Food Processing Industry Chirag Paswan on the inaugural day of World Food India, according to people familiar with the matter. The closed-door meeting aimed to address pressing concerns in the food processing sector.
Companies voiced concerns about the Production-Linked Incentive scheme, citing government rule changes mid-process. Specifically, they objected to the sudden disallowance of products containing imported ingredients, which has adversely affected businesses. These companies are now seeking relief from the government.
Another key issue was the ban on wheat exports, with companies negotiating for its reconsideration. CEOs also raised concerns about the recent import duty hike on refined edible oils and its potential impact on sales.
To safeguard profit margins, companies urged the government to reconsider its pricing directives. If companies cannot raise prices as mandated, they risk substantial losses. Some CEOs advocated for reducing the Goods and Services Tax on breakfast cereals from 18% to align with the 12% rate applied to butter, ghee, and packaged fruit juices.
Companies are also negotiating to reconsider the ban on wheat exports. CEOs raised concerns over the import duty hike on refined edible oils and its potential impact on sales.
There are calls for the government to reconsider its pricing directives to safeguard profit margins. If companies cannot raise prices as mandated, they risk substantial losses. Some CEOs advocated for reducing GST on breakfast cereals from 18% to 12%, aligning with rates for butter, ghee, and packaged fruit juices.
CEOs discussed taxation, sought clarification on customs duties, and highlighted regulatory challenges facing the food processing sector.
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