📉 What’s the Issue?
Several beverage
manufacturers in India are reportedly reducing the actual fruit content—specifically
mango pulp—in their packaged drinks. Earlier, these drinks contained about
20% mango pulp, but now many contain just 10%–11%.
🎯 Why Are Companies Doing
This?
The answer lies in India’s Goods and Services Tax (GST)
structure:
- Drinks with ≤10% fruit pulp: Attract 12%
GST (seen as “flavored beverages”).
- Drinks with >10% fruit pulp: Attract a
much higher 28% GST + 12% compensation cess (classified under
“fruit juices with substantial fruit content”).
So, companies
are allegedly tweaking their recipes to reduce fruit content just below
the 10% threshold, helping them pay less tax and keep prices
competitive.
📜 DMK MP Kanimozhi Raises
Alarm
📩 Letter to the Finance
Ministry
DMK Member of Parliament Kanimozhi
Karunanidhi wrote directly to the Union Finance Minister, expressing
concern that:
- This tax-driven dilution of pulp content is unethical.
- It harms mango farmers, who depend on
beverage companies for large-scale procurement.
- Consumers are misled, as they assume they're
drinking healthier, pulp-rich juices.
- She urged for investigations and policy
corrections to protect both producers and consumers.
📉 Impact on Mango Farmers
- Farmers report a drastic drop in bulk orders
from beverage companies.
- Since pulp-rich mango varieties like Totapuri,
Alphonso, and Dasheri were in demand for fruit-based drinks, the shift
affects these crop sales.
- Farmers have no alternative market to absorb
the sudden reduction in demand.
👥 Expert Opinions
Tax and food industry experts point out:
- Companies are not breaking the law, but exploiting
a loophole.
- The GST rule unintentionally incentivizes lower
fruit content—a policy contradiction.
- A clarification or amendment in GST
categorization is needed to prevent such misuse.
🧾 Consumer Rights
Violation
- Consumers are buying drinks that appear to be
real fruit juice, but are more like sugar-flavored beverages.
- These drinks still use images and branding that suggest
high fruit content.
- Nutritionists warn that these low-pulp drinks are less
healthy and mostly sugar and additives.
🏛️ Possible Government
Action
- The Finance Ministry is expected to review
the GST slab structure.
- Policy makers may consider redefining what
qualifies as a “fruit-based beverage”.
- Labels and product packaging might also require stricter
disclosure norms on fruit pulp percentage.
📌 Bottom Line
To reduce taxes, many beverage brands are sacrificing product quality by lowering real fruit pulp content—affecting farmers, consumers, and food integrity. With political intervention now underway, the issue could lead to regulatory tightening or a revised GST policy to encourage healthier, transparent practices.
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