India recently announced the details of its INR5.07tn (US$58bn) Budget 2025-2026, covering a multitude of fund allocations for various areas throughout the food sector including cold chain infrastructure and logistical improvements as well as quality improvement projects.
Whilst the announcement is generally acknowledged as a positive step forward for the country’s local agrifood industry, the food sector has highlighted disappointment in the lack of tariff adjustments for food ingredients.
“While the FMCG industry has welcomed the the government’s focus on agriculture and infrastructure development, there [are several issues remaining] that have led to mixed reactions from certain sectors, such as the dry fruits industry,” local snacks and beverages manufacturing firm Univision Foods’ Co-Founder Dev Pratap told FoodNavigator-Asia.
“This is because there were no specific measures directly addressing the challenges faced by the many companies in this field .
“Before the budget was announced, the industry had been hoping for measures such as reduced import duties on these essential commodities – but now we see that these still remain a concern.”
India grows many fruits from mangoes to litchi locally, but given the size of its population and position as the largest consumer market in the world, it is still dependent on imports for many variants such as apples and kiwis which are popular as dried snacks.
Adding to the sector’s strife is the fact that the Budget 2025 did indeed mention proposals for direct tax measures for other sectors such as batteries for mobile phones and shipping-related goods.
“There have been funds allocated for the improvement of cold storage facilities and logistics, but this is expected to [only] indirectly benefit the industry by reducing post-harvest losses and ensuring better quality produce,” he added.
“That said, the budget’s emphasis on promoting organic farming and sustainable practices could encourage dry fruit growers to adopt eco-friendly methods, potentially enhancing export opportunities.
“Overall, while the budget provides a supportive environment for the agricultural sector as a whole, the industry needs more targeted policies [to] boost its global competitiveness.”
More on Budget 2025
India’s Budget 2025 highlighted four key ‘Engines of development’ which would be the key focus of growth in its planned Journey of Development’ for the coming year – namely Agriculture, MSMEs (Micro, Small and Medium Enterprises), Investment and Exports.
The budget’s formal documentation mentioned several specific plans in this regard, including a six-year mission for pulses development.
“The emphasis for this plan would be the development and commercialisation of climate resilient variants, the enhancement of protein content, increased productivity, and the improvement of post-harvest storage and management,” Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman said when presenting the budget in parliament.
“Other measures targeting the local food industry will focus on MSMEs and labour intensive sectors, such as providing support for food processing – we will establish the National Institute of Food Technology locally to support all from farmers to entrepreneurs.”
