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Badal expresses satisfaction with GST rates fixed for processed food
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Thursday, 15 June, 2017, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Harsimrat Kaur Badal, Union minister for food processing industries, has stated that she is satisfied with the new rates of goods and services tax (GST) that have been fixed forprocessed foods following the 16th GST Council Meeting.
Speaking at a press conference held here recently to announce an event, Badal expressed gratitude towards the ministry of finance for accepting the representations made by her ministry to keep the rates for processed foods low.
She said, “I am totally satisfied with the GST rates for the food processing industry. I have been regularly writing to the finance ministry, suggesting that the rates of GST on processed foods be put in the lowest bracket to ensure low inflation.”
“The present rates announced by the GST Council have actually made certain foods cheaper,” she added.
However, after the GST Council first announced the rates at its Srinagar meeting, the food processing industry was in a shock. The council actually put many processed foods in the 18 per cent tax bracket. Products like pickles, jams and namkeens were put in this bracket, along with food mixes.
According to sources, several representations were made to the ministry of food processing industries (MoFPI) and to the finance minister with appeals to rectify the previous order.
Badal stated, ”Some people from the industry made representations, stating that rates levied on certain categories of processed food were higher than what they were earlier.”
“Industry representatives representing 15 different food categories made representations to us. We have put these forthto thefinance ministry, andare happy to state that the GST Council, that met recently, brought down the GST rates on these product categories,” she added.
The minister pointed out that her ministry had continuously been making representations to put processed foodin the lowest categories to tame the inflation.
Meanwhile, in response to a query about certain foodsthat remained in the higher tax bracket (including malt-based health drinks), she stated, “The rates of GST levied on all the items produced by the sectors that made representations to us were reduced, hence I am satisfied.”
The minister added that for the last three years, the Centre has set targets and launched a number of initiatives, like crop insurance,farm land insurance, the Kisan Sampada Yojana, mega food parks, and cold chains.
“These have been implementednot only with the objective of doubling the farmers’ incomes, but also doubling the food processing from the current level of 10 per cent,” she stated.
Badal said, “We are the largest producers offood, but only 10 per cent of our produce gets processed, and the amount of wastage is high. Besides, the farmers don’t get the correct remuneration.”
“Therefore, be it the electronic National Agriculture Market (eNAM) mandis, wherein 585 agri markets were linked to give the farmer a better price for his crop,mega food parks, cold chain infrastructure or the Kisan Sampada scheme, these will be accomplished in due time. These would give the farmers more options to improve their conditions and as well as increase processing,” she added.
In response to a query regarding foreign direct investment (FDI) in food retail, the minister stated that a major announcement was expected before the World Food Summit, which was slated to take place in New Delhi between November 3 and 5, 2017.
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