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Biscuit Industry in India-Status Paper: Annual Growth
Biscuit Industry in India-Status Paper: Annual Growth
Biscuit Industry in India-Status Paper: Annual Growth
ANNEXURE 1
While the growth rate has been stagnating
during last 4 years, it has picked up
momentum during the 2007-08 and the first
quarter of 2008-09 mainly on account of
exemption from Central Excise Duty on
biscuits with MRP up to Rs.100/per kg, as per
Union Budget for 2007-08.
ANNEXURE 1
Indian Biscuit Manufacturers’
Association (IBMA), instrumental in
obtaining the excise duty exemption,
estimates annual growth of around 20% in
the year 2008-09.
ANNEXURE 1
Annual Production:
ANNEXURE 1
(In Lakh Metric Tonnes)
2003-04 - 11.00
2004-05 - 12.54
2005-06 - 14.29
2006-07 - 16.14
2007-08 - 17.44
ANNEXURE 1
Segments:
ANNEXURE 1
• EXPORTS of Biscuit is estimated to be
around 15% of the annual production
during the year 2007-08.
ANNEXURE 1
Rural-urban penetration of Biscuit:
ANNEXURE 1
Marketing:
ANNEXURE 1
HIKE IN COST OF PRDUCTION
Biscuit Industry especially the Small & Medium Sector,
consisting of around 150 units are facing erosion in their
profitability and competitive capability, due to :-
ANNEXURE 1
• The above rates are excluding VAT &
other Taxes as well as
ANNEXURE 1
IMPACT OF ABOVE IN FINISHED
PRODUCTS
S.No Cost per KG Jan 08 May 08 Difference in In
Rs %age
1 Glucose 85 gm 31.08 31.73 0.65 2.09
ANNEXURE 1
Value Added Tax
Imposition of Value Added Tax (VAT) by
the State Governments @ 12.5%
compared to VAT at 4%/0% levied on
other similar food products has also
adversely affected biscuit industry.
ANNEXURE 1
VALUE ADDED TAX
ANNEXURE 1
IBMA estimates annual growth in the
range of 25% and above in the event of
reduction in the rate of VAT on Biscuits to
4%.
ANNEXURE 1
PER CAPITA CONSUMPTION of
Biscuits in the country is only 1.8 kg,
as compared to 2.5 kg to 5.5 kg in
South East Asian countries and
European countries, and 7.5 kg USA
ANNEXURE 1
Pattern of Biscuit Consumption(On Zonal
basis) in the country are as below:
ANNEXURE 1
Main Categories of Biscuits are broadly as under:
ANNEXURE 1