The Union Budget this year gave quite a platefull for the food processing industry. These include slashing the excise duty on soft drinks from 16 to 8 per cent and the announcement of food processing as a priority sector for bank credit. Big food and beverage companies are cheering to that.
According to the Coca-Cola spokesperson, the finance minister in his Budget proposal has taken the rationalisation of indirect taxes a step further. "We are happy to note that the finance minister has taken into cognisance the justifiable pending demand of the beverage industry for removal of Special Excise Duty (SED) on aerated waters thus bringing it at par with other processed food items," the spokesperson said.
Industry experts say that the removal of SED will enable the soft drink industry, dominated in India by the two Cola majors, Coke and Pepsi to make further investments that will fuel growth in demand, resulting in higher employment, revenue to the government and overall positive impact in related sectors and the economy.
Also, the finance minister announced in his Budget speech that excise duty on ready to eat packaged foods and instant food mixes like Dosa and Idli mix will be reduced from 16 per cent to 8 per cent. Also, with a view to give a fillip to the food processing industry, the finance minister has proposed to fully exempt from excise duty condensed milk, ice cream, preparations of meat, fish & poultry, pectin, pasta and yeast.
Big time corporate houses in the country including Hindustan Lever Limited (HLL), ITC-which is increasingly focusing on its food business, Dabur, Nestle, Amul and South-based MTR foods are only some of the corporates who are expected to put their act together to reap the benefits from the helping hand extended to the food processing industry. What’s more, Enhanced foreign as well as domestic investments will pour into the food processing sector in India, say industry analysts.
According to the Coca-Cola spokesperson, the finance minister in his Budget proposal has taken the rationalisation of indirect taxes a step further. "We are happy to note that the finance minister has taken into cognisance the justifiable pending demand of the beverage industry for removal of Special Excise Duty (SED) on aerated waters thus bringing it at par with other processed food items," the spokesperson said.
Industry experts say that the removal of SED will enable the soft drink industry, dominated in India by the two Cola majors, Coke and Pepsi to make further investments that will fuel growth in demand, resulting in higher employment, revenue to the government and overall positive impact in related sectors and the economy.
Also, the finance minister announced in his Budget speech that excise duty on ready to eat packaged foods and instant food mixes like Dosa and Idli mix will be reduced from 16 per cent to 8 per cent. Also, with a view to give a fillip to the food processing industry, the finance minister has proposed to fully exempt from excise duty condensed milk, ice cream, preparations of meat, fish & poultry, pectin, pasta and yeast.
Big time corporate houses in the country including Hindustan Lever Limited (HLL), ITC-which is increasingly focusing on its food business, Dabur, Nestle, Amul and South-based MTR foods are only some of the corporates who are expected to put their act together to reap the benefits from the helping hand extended to the food processing industry. What’s more, Enhanced foreign as well as domestic investments will pour into the food processing sector in India, say industry analysts.