Chief Minister N. Chandrababu Naidu has appealed to Union Finance Minister Nirmala Sitharaman to exempt mango pulp from the Goods and Services Tax (GST) and reduce the GST rate on fruit-based juices to safeguard the interests of mango farmers and fruit processors.
He stated in a representation to Ms. Sitharaman on Friday that the mango processing industries, particularly in Chittoor district, the largest mango-producing region in the country, were facing serious challenges.
With over 80,000 hectares under mango cultivation and an annual output of nearly 7.50 lakh metric tonnes, Chittoor district supports the livelihood of more than 1.20 lakh farmers. The district also hosts around 42 mango pulp processing units with a combined annual capacity of 4 lakh metric tonnes. Approximately 30% of the processed pulp is being exported, primarily to markets in the Middle East and Europe. However, a recent slump in exports coupled with weak domestic demand has led to a crisis, leaving over 1.50 lakh metric tonnes of mango pulp unsold.
In this context, the All India Food Processors’ Association and the Chittoor District Fruit Processors’ Federation have jointly submitted representations, seeking relief under the GST framework.
Endorsing the appeal, Mr. Naidu called for exemption from the 12% GST levied on mango pulp, which undergoes minimal thermal processing and contains no preservatives or additives, and a reduction of GST on fruit-based juices from 12% to 5% to promote the consumption of healthier, natural beverages.
This step was expected to boost demand for fruit pulp and benefit farmers by improving raw material offtake. Similar issues were being faced by mango farmers and processors in Tamil Nadu, Maharashtra and Karnataka, the Chief Minister stated, calling for immediate policy attention for reviving the sector.
In a separate letter to the Union Agriculture Minister Shivraj Singh Chouhan, Mr. Naidu sought a Central financial assistance of ₹130 crore for procuring Totapuri mangoes in the State. He highlighted the dire situation of mango farmers, particularly in the erstwhile Chittoor district — which now comprises Chittoor, Tirupati, and Annamayya districts, pointing out that the region was expected to produce nearly 6.50 lakh metric tonnes (MTs) of mangoes this season from approximately 80,000 hectares.
As the market prices fell causing much distress to the farmers, the A.P. Government announced a support price of ₹4 per kg with an equal contribution of ₹2 each from the State and Central governments.
In addition, traders and processors were urged to offer ₹8 per kg to enable farmers to receive a total procurement price of ₹12 per kg. To fulfil this commitment, the State government has to bear ₹130 crore, for which it sought a matching contribution from the Central government.
