GST relief sought for mango pulp, fruit juices

Vijayawada: Chief Minister Nara Chandrababu Naidu has formally appealed to Union Finance Minister Nirmala Sitharaman, urging her to exempt mango pulp from the Goods and Services Tax (GST) and to significantly reduce the GST rate on fruit-based juices.

This crucial request aims at safeguarding the economic interests of thousands of mango farmers and fruit processors, particularly in Andhra Pradesh. 

In a detailed representation to her on Friday, Naidu highlighted the severe challenges currently confronting the mango processing industry, especially in Andhra Pradesh's Chittoor district. Known as the country's largest mango-producing region, Chittoor boasts over 80,000 hectares under mango cultivation, yielding approximately 7.5 lakh metric tonnes annually and supporting the livelihoods of more than 1.20 lakh farmers. 

The district is also home to about 42 mango pulp processing units with a combined annual capacity of 4 lakh metric tonnes. While roughly 30 per cent of this processed pulp is typically exported to markets in the Middle East and Europe, a recent downturn in exports coupled with sluggish domestic demand has triggered a crisis, leaving over 1.50 lakh metric tonnes of mango pulp unsold. 

Responding to joint representations from the All-India Food Processors Association and the Chittoor District Fruit Processors Federation, Naidu articulated key proposals for GST relief. He argued that mango pulp, which undergoes minimal thermal processing and contains no preservatives or additives, serves primarily as a raw material for products like juices, ice creams, and flavourings. Exempting it from the current 12 per cent GST, he stated, would provide essential relief to processors and reduce input costs for related industries. 

Furthermore, Naidu advocated for a reduction in the GST on fruit-based juices from 12 per cent to 5 per cent. This move, he explained, would promote the consumption of healthier, natural beverages, thereby boosting demand for fruit pulp and benefiting farmers through improved raw material off-take. 

Naidu underscored that similar distress is being experienced by mango farmers and processors in other major mango-producing states, including Tamil Nadu, Maharashtra, and Karnataka. He called for immediate policy attention to revive this vital agricultural and processing sector across the nation.