LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

'Biscuit industry yet to recover from note ban impact'

The inclusion of low-priced glucose, milk and marie biscuits in GST will lead to shutting down of about 240 biscuit factories, warn manufacturers.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
'Biscuit industry yet to recover from note ban impact'
Biscuits in India are priced in the range of Rs 70 to Rs 700 per kg. Photo: Pixabay
Written By: PTI
Updated: Sun, Mar 12, 2017
12:52 pm
New Delhi, PTI
RELATED NEWS
GST Council may revise rates on these goods today GST Council may revise rates on these goods today
Apparel, biscuits, footwear cheaper; gold costlier under GST Apparel, biscuits, footwear cheaper; gold costlier under GST

The biscuit industry in the country has taken a hit of up to Rs 700 crore and rural sales continue to suffer after the government scrapped old high value notes.

"Due to cash crunch, there was a significant impact on the biscuits industry. The industry took hit of Rs 500-700 crore on sales due to demonetisation," Mayank Shah, vice president, Biscuit Manufacturers Welfare Association, told PTI.

Shah, who is also deputy marketing manager at Parle Products, said that while urban sales have recovered, rural sales continue to remain under pressure.

"We expect rural sales to come to normal levels in 1-2 months time," he added. Last November, the government had scrapped Rs 500 and Rs 1,000 notes, leading to a severe cash crunch in the system.

The biscuit industry have sought exemption in the proposed Goods and Services Tax (GST) regime for low-priced glucose and other varieties.

The inclusion of low-priced glucose, milk and marie biscuits in GST will lead to shutting down of about 240 biscuit factories, warn manufacturers.

Industry officials said that low-priced biscuits under Rs 100 per kilogram are low margin products and are currently exempted from the central excise duty.

"A proposed flat 12% GST on biscuits will be a grave injustice to the poor as biscuits retailing below Rs 100 per kg are treated as merit goods. If these products are included then about 240 biscuit factories will shut down," Shah said.

Low-cost biscuits which at present account for 40% of total sales may fall down to 20-25% if they are taxed under GST.

Biscuit manufacturers, however, are in consensus that the government can levy high tax of even up to 18% on higher priced biscuits.

Biscuits in India are priced in the range of Rs 70 to Rs 700 per kg. As per Biscuit Manufacturers Welfare Association, which has over 50 members, biscuits industry at present in India in estimated at Rs 37,500 crore.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
BiscuitsDemonetisationNote BanBiscuit Manufacturers Welfare AssociationParle productsGoods and Services Tax (GST)FMCGBiscuit industry
RELATED NEWS
GST Council may revise rates on these goods today GST Council may revise rates on these goods today
Apparel, biscuits, footwear cheaper; gold costlier under GST Apparel, biscuits, footwear cheaper; gold costlier under GST

LATEST NEWS

Midcap Picks with Anil Singhvi: Astral Poly, Syngene International and Thyrocare - 3 very buzzing counters

Stock market volatility: Anil Singhvi reveals key levels to watch; says Bank Nifty will take longer to recover than Nifty

Man Industries has an order book of Rs 2,000 crore: Dr. R C Mansukhani, Chairman

After Delhi, lockdown announced in UP districts Lucknow, Prayagraj, Varanasi, Kanpur, Gorakhpur – Complete DETAILS HERE

In chat with Anil Singhvi, Mehraboon Irani says 2nd Covid-19 wave could really affect markets

WATCH: Mumbai pointsman saves child from being run over by train; Twitterati hails real-life hero, demands award for him

BIG! VACCINATION FOR ALL for 18 years and above from 1 May - here are key takeaways form this Government decision

Cipla, Cadila Healthcare, Glenmark Pharma: Technicals highlighted by Bonanza Portfolio

Radhakishan Damani stocks: These two gave bumper returns; check what experts have to say

Capco’s acquisition will be completed in Q1FY22: Jatin Dalal, Wipro

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved