Chennai (Tamil Nadu) [India], June 30 : In a letter addressed to the Union Minister of Food Processing Industries, Chirag Paswan, Member of Parliament from Dravida Munnetra Kazhagam (DMK), Kanimozhi Karunanidhi has highlighted the problems faced by mango farmers in the country, especially in Tamil Nadu. She underlined the decrease in demand for mango produce by the beverage manufacturing companies to cut down GST charges.
The letter explained that the mango farmers have been facing consistent losses over the past few years due to a significant reduction in the quantity of mango pulp used by beverage manufacturers. According to the data shared in the letter, the use of mango pulp content has dropped to 11 % in 2024 compared to 20% in the year 2022. This drastic decline is largely attributed to the current GST structure.
Under the existing tax regime, fruit juices containing more than 10% real fruit content attract a 28% GST, equivalent to the rate imposed on carbonated drinks. Whereas, beverages with less than 10% fruit content fall under an 18% GST slab or even lower, depending on the product's classification. To avoid paying higher tax, manufacturers have opted to reduce the quantity of mango pulp in their drinks.
Kanimozhi also pointed out that the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2016 mandate a minimum of 10% fruit content to label a product as 'Fruit Juice.' However, beverage companies have begun to get around these standards by labelling their products as 'Fruit-Based Beverages' or 'Fruit Drink.' These categories are governed by more lenient regulations, which require only 5-10% fruit pulp, depending on the fruit type. This shift in labelling and manufacturing has significantly impacted mango farmers, who are now facing lower demand for their produce.
The MP has requested the Union Minister to intervene and take necessary steps to direct beverage manufacturers to restore the mango pulp content to the earlier level of 20%. Additionally, she has urged stricter enforcement of FSSAI norms to prevent the misuse of product labelling that allows companies to dodge regulatory and taxation guidelines.