The Centre is considering linking GST concessions on mango-based beverages to their natural pulp content in a move aimed at boosting demand for Totapuri mangoes and supporting farmers, The Times of India reported.
The proposal, based on the recommendations of a government-appointed expert committee, suggests retaining the concessional 5 percent GST rate only for mango beverages containing 22-25 percent genuine natural mango pulp. Products with lower pulp content could attract a higher GST rate.
The panel, headed by Director of ICAR-Central Institute of Subtropical Horticulture (CISH), submitted its report to Agriculture Minister Shivraj Singh Chouhan.
The minister has directed officials to begin inter-ministerial consultations on the recommendations, the report said.
Quoting the Ministry of Agriculture and Farmers Welfare, The Times of India reported: “In the committee’s view, if only those beverages which contain more than the prescribed limit of pulp are kept in the 5 per cent concessional Goods and Services Tax (GST) category, and higher GST rates are applied to low-pulp products, then on the one hand consumption of Totapuri mango pulp will increase, and on the other hand consumers will get more nutritious and genuine fruit-based beverages.”
The proposal is intended to revive demand for Totapuri pulp after prices fell sharply this season across Andhra Pradesh, Tamil Nadu and Karnataka. The committee attributed the decline to delayed procurement by processing units, low pulp content in beverages sold in the domestic market and volatility in global prices.
To implement the proposal, the Centre plans to convene a meeting involving the GST Council, the Food Safety and Standards Authority of India (FSSAI), and the ministries of finance, agriculture, food processing and health to finalise the tax structure and product standards.
The panel has also recommended creating a Central Coordination and Price Stabilisation Committee for Andhra Pradesh, Tamil Nadu and Karnataka to assess crop estimates, processing demand, exports and input costs before every season and recommend indicative procurement prices.
According to the report, the committee also proposed rejuvenating ageing Totapuri orchards in Andhra Pradesh through grafting with higher-value mango varieties, expanding Good Agricultural Practices, standardising procurement timelines and promoting farmer-led value-added products. It further recommended strengthening domestic and export markets for Totapuri mangoes through coordinated efforts by APEDA, ICAR and state governments.
