The Hindu Business Line : Biscuit units call for excise reprieve

THE Federation of Biscuit Manufacturers' of India (FBMI) has said that the recent spurt in the import of biscuits poses a threat to the domestic industry.

An FBMI communiqué pointed out that the industry was already reeling under the burden of excise duty and sales tax, besides a demand recession. Most biscuit manufacturers are operating only 50 to 60 per cent of their installed capacities, it noted.

According to the industry forum, the 100 per cent hike in excise duty since 2000-01 had affected biscuit manufacturers. As a result, about 30 biscuit units have closed shutters and more are faced with the same fate, unless there is come reprieve in the forthcoming Budget, it said.

The federation said that biscuits were a low-margin and high-volume food product and had been singled out for 16 per cent excise duty, while similar agri-based foods were exempted.

Biscuits are subjected to sales tax, eight per cent to 16 per cent, by State Governments, besides other State/local levies.

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