FMCG Industry
Key Announcements
Packed biscuits of maximum retail sale price (MRP) not exceeding Rs50 per kg fully exempted from excise duty.
Excise duty on food mixes (including instant food mixes) fully exempt from excise duty.
Customs duty on food processing machinery has been reduced from 7.5% to 5%.
Crude as well as refined edible oils exempt from the additional CV duty of 4%.
Customs duty on crude sunflower oil has been reduced from 65% to 50% and on refined sunflower oil from 75% to 60%.
A Special Purpose Tea Fund launched for re-plantation and rejuvenation of tea. Similar financial mechanisms to be announced for coffee.
Excise duty on parts of footwear reduced from 16% to 8%.
Impact
Positive for Marico, Bata, organized biscuit manufacturers like Britannia, ITC and food-processing companies like ITC, Nestle, HLL, Dabur, MTR Foods.