Centre panel proposes lower GST on mango drinks with higher pulp content

The Centre-appointed expert committee has recommended that mango-based beverages contain 22-25% genuine natural mango pulp, with the concessional 5% GST rate available only to products meeting this threshold. The move aims to boost demand for Totapuri mango pulp and improve prices for farmers.

The panel, headed by T Damodaran, Director of ICAR-Central Institute of Subtropical Horticulture (CISH), Lucknow, submitted its report at a meeting chaired by Agriculture Minister Shivraj Singh Chouhan, who directed officials to begin inter-ministerial consultations on the recommendations.

The committee was set up to examine the steep fall in Totapuri mango prices this season in Andhra Pradesh, Tamil Nadu and Karnataka, the country's main growing regions.


Damodaran attributed the price decline to a mismatch between processing capacity and procurement timelines, low pulp content in mango beverages sold in the domestic market, and fluctuations in global prices.

"Processing units in several centres are not procuring fruit in time at the start of the season, even as arrivals from farmers peak simultaneously - a bunching effect that depresses prices and hits grower incomes," he said in an official statement.

The committee's key recommendation links GST benefits for mango beverages to their actual fruit content. Products containing less than the proposed minimum pulp level would attract a higher GST rate, while beverages meeting the standard would continue to enjoy the concessional 5% tax.

According to the Agriculture Ministry, the proposal is expected to increase consumption of Totapuri mango pulp while improving the nutritional quality of mango-based beverages.

To implement the proposal, the Centre plans to hold an inter-ministerial meeting involving the FSSAI, GST Council, and the Ministries of Finance, Food Processing Industries, Agriculture and Health to finalise product standards and the revised tax structure.

The committee has also proposed setting up a Central Coordination and Price Stabilisation Committee covering Andhra Pradesh, Tamil Nadu and Karnataka to improve price predictability.

Before every mango season, the proposed body would assess crop estimates, processing and export demand, input costs and market conditions to determine indicative farm-gate procurement prices and reference pulp prices, providing advance price signals to both farmers and processors.

The report noted that a large share of Totapuri orchards in Andhra Pradesh's Chittoor, Tirupati, Annamayya and Kadapa districts consists of ageing plantations with declining yields and fruit quality.

It recommended top-working, or grafting existing trees with high-value varieties such as Neelam, Alphonso, Himayat and Banganapalli, to restore productivity within two to three years. The panel also suggested promoting Good Agricultural Practices (GAP), farmer training and demonstration plots.

To improve fruit quality, the committee proposed covering fruits across an initial 23,333 hectares in the four Andhra Pradesh districts to reduce insect damage and enhance appearance, making the produce more suitable for premium markets.

Among its other recommendations are a zonal procurement and pre-processing system, with annual procurement plans jointly prepared by state horticulture departments, processing units and farmer producer organisations (FPOs).

The panel also recommended a standard operating procedure for Andhra Pradesh requiring all registered processing units to begin procurement and pulp production from May 15 every year.

It further proposed promoting farmer-led and FPO-based value addition, including production of mango butter and other seed-kernel by-products using technologies developed by ICAR-CISH and IIHR, creating an additional source of income for growers.

Representatives of APEDA informed the meeting about plans to expand domestic and export markets for Totapuri and other Indian mango varieties, with greater use of sea freight to reduce logistics costs and access new markets.

Chouhan said a coordinated export and marketing strategy for Totapuri-based processed products and fresh table mangoes would be developed jointly with APEDA, ICAR and state governments.

The minister said the objective is to make the entire Totapuri value chain farmer-centric, with a roadmap aligning GST, food safety standards and state-level policies.

He expressed confidence that full implementation of the measures would sustainably lift incomes for Totapuri growers across the three states and strengthen the market positioning of Indian mangoes globally.

The recommendations are based on the committee's field visits to Tirupati and Chittoor districts between July 8 and 10, where it held consultations with farmers, FPOs, traders, pulp processors, exporters and district administration officials across the Totapuri mango value chain.