Tootapores “Am” may soon decide more than just the flavor of your drink!The mango variety can also fix the GST rate on your flavored drink under the Centre’s latest move to support farmers while encouraging beverage makers to use more of the real fruit.
The government has proposed to retain the concessional GST rate of 5% for mango-based drinks containing 22-25% of original natural mango pulp.The proposal is based on the findings of an expert committee appointed by the Centre, and aims to revive demand for totapuri pulp after prices fell this season across the country’s main growth belt.The committee, headed by T Damodaran, director of the Central Institute of Subtropical Horticulture (CISH), Lucknow, submitted its report to Agriculture Minister Shivraj Singh Chouhan.
The Minister directed officials to begin ministerial consultations on the committee’s proposals.The committee has been formed to study the sharp decline in prices of Totapuri mangoes in Andhra Pradesh, Tamil Nadu and Karnataka.
Tax incentives for Totapuri drinks
At the heart of the report is a proposal to link the GST treatment of mango-based drinks to the amount of real natural mango pulp they contain. The committee recommended that beverages containing 22-25% pulp should continue to qualify for the 5% concessional GST slab, while products with pulp content below the specified threshold should attract a higher GST rate.
According to the Ministry of Agriculture, the proposal is expected to increase consumption of totapuri mango pulp while improving the nutritional quality of beverages available to consumers.To implement this recommendation, the Center will convene an inter-ministerial meeting comprising the Food Safety and Standards Authority of India (FSSAI), the GST Council, and the ministries of Finance, Food Processing Industries, Agriculture and Health to finalize the norms and tax structure.“In the Committee’s view, if only drinks containing more than the prescribed limit of pulp are kept in the 5 per cent concessional GST category, and higher GST rates are applied to low-pulp products, then, on the one hand, the consumption of totapuri mango pulp will increase, and on the other hand, consumers will get more nutritious and authentic fruit-based drinks,” the Ministry of Agriculture and Farmers’ Welfare said.
Why did Totapuri prices collapse?
The committee attributed the decline in totapuri prices to a combination of factors, including a mismatch between processing capacity and procurement timelines, low pulp content in beverages sold in the local market, and fluctuating global prices.Damodaran said processing units in many centers do not start procuring fruit early enough in the season, even as large quantities of mangoes reach the markets at the same time.
He said in an official statement that this gathering of expatriates pushes prices down and affects farmers’ income.To reduce these fluctuations, the committee recommended the formation of a central price stabilization and coordination committee covering the states of Andhra Pradesh, Tamil Nadu and Karnataka.Before each season, the proposed body would evaluate crop estimates, processing and export demand, input costs, and market conditions before arriving at farmgate indicative prices and reference pulp prices, giving farmers and processors advance price signals.
Revitalizing aging orchards
The report also drew attention to aging Totapuri orchards in Chittoor, Tirupati, Annamaya and Kadapa districts of Andhra Pradesh, where the quality of the crop and fruit is declining.To improve the yields of these orchards, the committee recommended enhancing the existing trees by grafting the existing trees with higher value varieties such as Neelam, Alphonso, Himayat and Panganapalli. This could return orchards to more profitable production within two to three years, she said.Besides, the committee proposed adoption of good agricultural practices (GAP) at cluster level, farmer training programs and pilot plots.It also proposed fruit mulch over an initial area of 23,333 hectares in the four districts of Andhra Pradesh to reduce insect damage, improve the appearance of the fruit and position the products in premium markets.
Purchases and exports
The committee recommended the introduction of a zonal procurement and pre-processing system, with annual procurement plans jointly prepared by the horticulture department, processing units and farmer producer organizations (FPOs).It also proposed a standard operating procedure for Andhra Pradesh that would require all registered processing units to start procurement and production of pulp from May 15 every year.To create additional income opportunities, the committee recommended strengthening FPO-based farmer-led value addition models, including mango butter and other seed kernel by-products using ICAR-CISH and IIHR technology.At the meeting, APEDA representatives outlined plans to expand domestic and export markets for totapuri and other Indian mango varieties, with a special focus on sea freight to reduce logistics costs and reach new destinations.Chouhan said APEDA, ICAR and the state governments will jointly prepare a coordinated export and marketing strategy for totapuri-based processed products and fresh table mangoes.The minister said the aim is to make the Totapuri value chain farmer-centric through a roadmap consistent with GST, food safety standards and state-level policies. He expressed confidence that implementation of the recommendations would sustainably increase the income of Totapuri farmers across Andhra Pradesh, Tamil Nadu and Karnataka while strengthening the market position of Indian mango globally.The committee’s report follows field visits to Tirupati and Chittoor districts between July 8 and 10, where members interacted with farmers, FPOs, market representatives, pulp manufacturers, exporters and district administration officials across the value chain in Totapuri.