CEOs of big food firms pledge to pass on GST rate cuts to consumers

New Delhi, Sep 11 Leading CEOs from big food companies on Thursday voluntarily pledged to pass on the benefits of GST rate reductions to the consumers.

The assurance was given at a meeting convened by the Ministry of Food Processing Industries, in collaboration with the Confederation of Indian Industry (CII). The roundtable, chaired by Chirag Paswan, Minister of Food Processing Industries, provided an important platform for open dialogue between government and industry stakeholders.

The business leaders also committed to sensitising smaller enterprises across the ecosystem, ensuring farmers receive better value, and advancing the goals of import substitution and Make in India. Industry captains noted that the reforms would not only lower prices but also stimulate demand, ultimately driving growth across the sector.

The discussions focused on the recently announced Next-Generation GST Reforms, which rationalize the tax structure into a simplified two-slab system of 5 per cent and 18 per cent.

These reforms, aimed at reducing complexity, addressing inverted duty structures, and enhancing ease of doing business, are expected to significantly benefit the food processing ecosystem.

With key staples, dairy, bakery, and packaged food products now under the 5 per cent or nil tax bracket, the sector is poised to witness greater consumer affordability, improved liquidity for enterprises, and stronger competitiveness in domestic and global markets.

In his keynote address, the minister reaffirmed the government’s commitment to creating an enabling environment for investment, innovation, and inclusive growth across the food processing sector. He urged industry leaders to ensure that the benefits of GST rationalisation are passed on equitably across the value chain, from farmers and MSMEs to consumers.

Quoting the Prime Minister’s vision of “Reform, Perform, and Transform”, the Minister emphasised how the GST reforms have rationalised the tax structure, corrected long-standing anomalies, and created fresh opportunities for growth. He underlined that food processing is among the biggest beneficiaries of the reforms, calling it a transformative step for a sector that has the potential not only to drive value addition but also to reduce India’s dependence on imports.

The Minister stressed that the objective of today’s interaction was to step up collective responsibility for the smooth implementation of GST reforms. He called upon industry to actively work towards passing benefits to consumers, enhancing product quality, formalising the unorganised sector, and ensuring greater income security for farmers.

Highlighting India’s global standing as the largest producer of several agricultural commodities, the Minister noted that low levels of value addition remain a challenge. He encouraged industry to view the reforms as an opportunity to invest in technology, diversify product offerings, and expand into global markets.

Industry leaders shared their perspectives on opportunities in exports, product diversification, and technology adoption, while also flagging areas requiring further facilitation. The session concluded with a reaffirmation of government- industry partnership to unlock the sector’s full potential.

The Ministry also announced that the 4th edition of World Food India will be held from 25th–28th September 2025 at Bharat Mandapam in Delhi.

As India’s premier global platform for the food processing sector, the event will feature B2B and B2G meetings, sectoral roundtables, and international exhibitions, buyer-seller meets and much more, offering unparalleled opportunities for investment, innovation, and partnerships.

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