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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.
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Annual Production:
The organized biscuit manufacturing industrys annual production figures are given below:
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Segments: The organized and unorganized sectors of the biscuit industry is in the proportion Of 60%:40% ratio.
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EXPORTS of Biscuit is estimated to be around 15% of the annual production during the year 2007-08.
IMPORTS of biscuits into India has not shown any significant growth during the last two years and has not affected production/sales by the Indian Biscuit industry
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Marketing: Wholesale and Retail marketing in the Biscuit industry is carried out with a network of C & F Agencies (for States and specific Districts), Dealers / Wholesalers and Retail shops.
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a)
Steep hike in cost of production on account of increase in prices of major raw materials, i.e. Wheat Flour, Veg. Oil, Sugar, Milk, Packaging Materials, Fuel. Wages,etc.Recent increase in prices of Petrol/Diesel in May 2008 has further resulted n cost push.
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The above rates are excluding VAT & other Taxes as well as
Cost escalation due to increase prices of Laminate, hike in prices of Petrol/ Diesel, Revision of wages
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VALUE ADDED TAX On behalf of the industry, IBMA has been pursing the issue with the Chief Ministers/Finance Ministers of all States and also with the Chairman of the Empowered Committee on VAT, seeking reduction in the rate of VAT on biscuit to 4%. IBMA delegations have already met Shri Asim Dasgupta, Chairman, Empowered Committee on VAT, as well as Deputy Chief Ministers & Finance Ministers of Bihar, Orissa, Jharkhand, Punjab, Haryana,Delhi, Andhra Pradesh, and oficials of Uttar Pradesh etc.While most of the State Ministers have expressed their support of IBMAs representation, however the issue has not so far received favourable consideration by the Empowered Committee on VAT.
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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%.
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Pattern of Biscuit Consumption(On Zonal basis) in the country are as below: Northern Zone Western Zone Southern Zone East and North East Zone (Including N.East) 25% 23% 24%
28%
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The per capita consumption as well as pattern of consumption in the four regions, as shown above, will also increase considerably, in case the industrys plea for reduction in the rate of Value Added Tax (VAT) from 12.5% to 4% is acceded to.
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Main Categories of Biscuits are broadly as under: Glucose, Marie. Sweet, Cream, & Milk, Popular Brands of Biscuits in the country are, Britannia, Parle, Priyagold, Anmol, Sunfeast, Biskfarm, Dukes, Cremica, Priya, Veeramani, Bonn, Bhagwati, Raja, Champion,Sobisco,Madhabi, Nezone, Windsor, Cookieman Ankit, Shangrila, Nalanda, etc.
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