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Pre-Budget Quote by Food & Beverage Industry
Vikram Agarwal Managing Director, Greendot Health Foods Pvt. Ltd. "This fiscal year we would like the budget to enhance food sector competitiveness in the International market. The Government should provide a budget for export incentive schemes to the
Vikram Agarwal
Managing Director, Greendot Health Foods Pvt. Ltd.
“This fiscal year we would like the budget to enhance food sector competitiveness in the International market. The Government should provide a budget for export incentive schemes to the food sector and a subsidy for overseas participation in major food shows.”
Abhinav Jindal
CEO & Founder, Kimaya Himalayan Beverages
Bringing the industry under the ambit of GST – Since the taxation that we are liable for is under the state VAT, we do not get GST input credit for the raw and packaging materials used in the manufacturing process. This results in an additional impact of about 18% on the cost which goes unutilized. If provided with additional industry funds/ financial support, we can further invest it in innovation and the improvisation of quality. Secondly, with the massive jump in the cost of raw materials, it would be prudent to allow low-cost imports of packaging materials into the country in order to minimize the spending on the same.
The food processing ministries of the central government should nudge the state governments to create policies enabling local craft manufacturers and homegrown brands to be promoted under the various state excise policies which are currently under the control of large multinationals who sell in India but skim the Indian market’s profits, not leaving anything for local manufacturers. Hence, we definitely need strong support from the government to promote local manufacturers or homegrown brands.
Talking about the contribution of the industry to the union and the state revenue, we contribute to the union by paying GST on all the inputs, a massive amount of state excise duties, and VAT to all the states. Currently, big multinationals such as Diageo, Pernod, Heineken NV, and AB InBev have an overall share of over 65% of the liquor industry in India and a similar share of the money is flowing out of the country. We expect the government to bring in policies that support local manufacturers so that the revenue is invested in the country only. It is important for the government to structure the revenue on the basis of contribution and distribution.
Karan Jain,
CEO, BrewDog India
“The outlook is good and there is optimism. We are hopeful that there will be a focus on the growth of the F&B industry. The restaurant industry needs input tax credit on GST and VAT as it drives high costs. We look forward to a uniform GST as currently, it jumps from 12% to 18% depending on the category. It will be great to have a single window for permits and licenses as well. We also feel that craft beer should be recognised as a separate category with lower license fees, flat duty and permit to export to other states”
Aman Arora
Co-Founder and Chief Marketing Officer, Keventers
“Companies are witnessing broad-based inflation and seeing inflation in their primary operating expenses as well. We are hopeful that there will be a focus on the growth of the FMCG industry. Food and beverages account for half of annual turnover of the FMCG industry and these categories are together expected to grow at a faster pace in FY23, compared to the personal care and home care segments”
