More pulp, less tax: Govt hits sweet spot with 'aam' proposal to help Totapuri farmers
The Indian government is considering a proposal to link GST rates for mango-based beverages to their natural pulp content. This initiative aims to support Totapuri mango farmers by incentivizing beverage companies to use more fruit pulp.
Why it matters
This policy demonstrates how tax structures can be used as a tool for agricultural economic intervention and supply chain management.
Those ‘aam’ Totapuris may soon decide more than just the flavour of your drink!The mango variety could also determine the GST rate on your flavoured drink under the Centre's latest move to support farmers while encouraging beverage makers to use more real fruit. The government has proposed reserving the concessional 5% GST rate for mango-based beverages containing 22-25% genuine natural mango pulp.The proposal is based on the findings of a Centre-appointed expert committee and is intended to revive demand for Totapuri pulp after prices slumped this season across the country's main growing belt.The panel, headed by T Damodaran, director of ICAR-Central Institute of Subtropical Horticulture (CISH), Lucknow, submitted its report to agriculture minister Shivraj Singh Chouhan.
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