Budget 2022 | Reactions from Food and Beverage Industry to FM Sitharaman's announcements

Budget 2022  |  It was a rollercoaster ride for the Food and Beverage industry. Industry was eagerly waiting for the Budget Allocations. Therefore, here’s how the Food and Beverage sector reacted to the announcements made by the Finance Minister. 

Ghanshyam Khandelwal, Chairman, BL Agro, India's leading FMCG company

"The budget was as expected. We didn't anticipate the industry to take centre stage because several schemes for the FMCG sector have already been implemented in recent years. However, the mention of a rationalized strategy to improve domestic oilseed production and minimize reliance on imports was welcomed.

A more promising statement was the package that centers on farmers adopting appropriate fruits and vegetables, as well as proper harvesting practices. The move will go a long way towards uplifting the food processing sector. "

Rishubh Satiya, Co-Founder, Plix

Being a startup we are pleased to see that the budget has once again prioritised our needs. The decision to extend tax incentives to March 2023 is a welcomed move. The pandemic has been difficult for a lot of businesses. Many startups had to pivot overnight and this extension is a great way to support the fraternity. Plix being a plant based wellness brand, welcomes the attention being given to the sustainability movement. The budget also focuses on the need to prioritise mental health. However, we were hoping to see some decisions to support overall health and well-being. We also hope that in the future the ministry prioritises the need for sustainable and clean living.

Mr. Vikram Agarwal, Managing Director, Cornitos

"The Union Budget 2022-23 is a progressive budget, our Government is concentrating on infrastructure, employment generation, and future developments. This appears to be a growth-oriented budget as efforts are being made to reduce compliance burdens and improve ease of doing business. The Budget has given an extension of the ECLGS Scheme which would provide much-needed help to the MSME sector especially the hospitality and related food processing segments. The past few years have been tumultuous for the hospitality segment and I am hopeful that this initiative gives the industry a much-needed boost."

Teja Chekuri, Managing Partner, Ironhill India

It is heartening to hear that India's growth estimated to be at 9.2%, highest among all large economies. We are now in a strong position to withstand challenges as the Hon. Finance minister states. While it is a growth oriented budget, there is no big bang announcement for any sector including hospitality. This sector is still recovering and has some way to go. Although the credit guarantee scheme does provide some assurance of keeping the MSME hospitality sector afloat, we had hoped for tax breaks and a more holistic support system to enable growth for this specific industry.

-----