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FMCG products to see decline in volume post GST: Britannia

GST would provide a level-playing field to organised players in the industry

Press Trust of India  |  New Delhi 

Consumption stocks continue to bleed on demonetisation
The government has decided to tax biscuits at 18 per cent under the GST while milk will cost less as the GST Council has exempted the daily-use commodity from any levy

products will see a decline in volume in the short term with channel partners of keeping less stock in view of GST, which is set for July 1 launch, according to

The company, however, said that with rates for the overall biscuit category being largely neutral, would provide a level-playing field to organised players in the


"This is going to be a fairly tight month, especially for companies, as trade will down-stock, no matter, how much communication and assurances are sent out to them," Managing Director Varun Berry told PTI.

This will take a toll on volumes in the short term, say for the next three months, he added.

It will be crucial for to keep a tab on what is happening at the ground level due to the new and keep communication open with their channel partners, Berry said in an e-mailed response.

"The key thing is to have the ear to the ground in the next 3-6 months, which is the time (when) there is a likelihood of disruptions due to channel down-stocking and are also likely to be cautious in ensuring they maintain a balance of their entire shopping basket," he added.

The has decided to biscuits at 18 per cent under the while milk will cost less as the Council has exempted the daily-use commodity from any levy.

Expressing satisfaction over the rate for the biscuit category, he said: "The rates have been largely neutral. We feel that should provide a level-playing field to organised players in the "

The industry, he also said, is quite optimistic that if implemented well, will be beneficial to and in the long run.

First Published: Sun, June 11 2017. 13:14 IST
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