What’s the State of Play in India’s Potato Chips Market? – Just-Food Deep-Dive, Part One

Introduction

In a move that will lower the cost of popular Indian snacks, the Centre recently announced a reduction in the Goods and Services Tax (GST) on namkeen and savoury products. The decision was made during the 54th GST Council meeting, offering relief to snack manufacturers and consumers alike. This step is expected to stimulate the snack market and make namkeen products more affordable for the masses.

GST Cut Details and Market Impact
The GST on namkeen and savoury items has been slashed, which will likely result in a price reduction for a range of popular snacks. Major players in the snack industry, such as Bikaji Foods, Gopal Snacks, and Prataap Snacks, are expected to benefit from this policy change. These companies, known for their wide range of namkeen products, have seen an uptick in share prices as a result of the announcement, with Bikaji Foods gaining as much as 7.76%, Gopal Snacks rising by 10%, and Prataap Snacks surging by 8.05%.The tax reduction is seen as a significant move for the snack industry, which has been grappling with rising costs due to inflation and supply chain disruptions. With lower taxes, snack brands will be able to pass on the savings to consumers, making their products more competitive in the market.

Opportunities for the Snack Industry
The price reduction on namkeen items will likely boost demand for these popular snacks, which are enjoyed by millions across India. The lower GST could also drive new product innovations and increased sales as consumers are more likely to purchase affordable snacks. This could especially benefit regional brands that focus on traditional, local flavours, as well as larger national players that have widespread distribution.As companies in the food sector adapt to the new tax regime, there may also be further efforts to streamline operations and improve packaging to attract a broader consumer base.

Conclusion
The GST reduction on namkeen products is a welcome move for both consumers and snack manufacturers in India. By making snacks more affordable, the government has set the stage for increased competition and innovation within the snack market. As brands adjust to the new pricing structure, consumers can expect more variety and better deals on their favourite namkeen snacks.

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#GST #Namkeen #SnackMarket #FoodIndustry #TaxCut #PrataapSnacks #BikajiFoods #GopalSnacks #IndianSnacks #FoodPolicy