“Margarine earlier attracted 18% GST, which made it less competitive despite being made from vegetable oil. Now at 5%, it is at par with ghee and edible oil, benefiting bakeries, ice cream makers, and the wider food industry,” Mallick told ET Now.
Similarly, GST on soya nuggets has been reduced from 12% to 5%, a move Mallick believes will help both consumers and farmers. “Plant protein demand has risen sharply since the pandemic, as doctors recommend higher protein intake. At 12%, soya nuggets were costlier, but now the price benefit will reach consumers—especially vegetarians seeking affordable protein. This will also support soybean farmers as demand for their produce grows,” he explained.
Processed foods get a boost
Adani Wilmar, which has a presence in staples and processed foods, expects the GST relief to encourage more consumption. “We also make soya nuggets, jams, jellies, and other products. Earlier these were taxed at 12%, now they are at 5%. This reduction is a big help for the entire processed food industry,” Mallick said.
However, he noted that some expectations were unmet. “We had hoped branded atta, suji, and dal would be exempted, but that has not happened,” he added.
Rural demand to benefit
Mallick expects rural India to see a meaningful uplift from the tax cut. “The benefit of lower GST will reach both rural and urban markets. In particular, soya nuggets represent a Rs 1 lakh tonne market in India, growing at 15–18% annually. With reduced taxes, we see a great opportunity for faster growth,” he said.While edible oil volumes may remain stable since the tax rate is unchanged, Adani Wilmar sees strong momentum in soya-based products and margarine as consumers respond to lower prices.
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