GST cut on millets, molasses in relief to farmers ahead of polls

The Goods and Services Tax (GST) Council on Saturday put unbranded flour containing 70% millets in the taxfree category and reduced GST on molasses from 28% to 5% in a major relief to farmers, particularly sugarcane cultivators and coarse grain producers of Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.

- Rajeev Jayaswal

Announcing the decision of the 52nd GST Council, Union finance minister Nirmala Sitharaman said the tax on food preparation of millet flour in powder form, containing at least 70% millets by weight, will be zero if it is sold loose. It will attract 5% GST if sold in a prepackaged and labelled form.

The decision is in line with Prime Minister Narendra Modi's special emphasis on Shree Anna (India's branding of millets), which led to the declaration of 2023 as the International Year of Millets by the Food and Agriculture Organization and United Nations.

At the global millets conference on March 18, PM said Shree Anna is "a door to prosperity for the small farmers... a cornerstone of nutrition for crores of countrymen... a big foundation for chemical-free farming and a huge help in fighting climate change". India is the largest producer of millets in the world with 98% production from 10 states, including pollbound Rajasthan and Madhya Pradesh.