5% GST on retail packs is the main reason for inflation in food

30-Aug-2024 05:26 PM

Raipur. On one hand, the Central Government is implementing various rules to reduce food inflation, which includes stock limit, on the other hand, it also makes some policies due to which the price of food grains naturally increases.

Vijay Goyal, a famous businessman of Raipur (Chhattisgarh), has said that the 5% GST imposed on retail packs is basically responsible for the rising inflation in food grains in the country.

According to Vijay Goyal, before the implementation of GST, entrepreneurs of home industry and micro sector used to stock food grains in small packing in the domestic market, due to which a large section of people in rural areas get employment near their homes.

But after the implementation of 5% GST, the situation changed and the packing work started being done by small entrepreneurs through automatic sortex machines. As a result, the price of retail packs of food grains has increased by up to 35 percent.

The government considers black marketing and profiteering responsible for this price rise, whereas the reality is that the price of food grains is rising due to GST.

The government is requested to accept this truth as much as possible and immediately abolish the 5 percent GST on retail packs of non-branded food grains. This will ensure a reduction in prices.

The example of rice can be seen. If its production cost is assumed to be Rs 33 per kg, then this time, after adding the packing cost of 10 paise per kg and the transportation charges of 10 paise per kg,

it used to reach the shops at the rate of Rs 33.20 per kg and the shopkeeper used to make a profit of 50 paise per kg and sell it to consumers / customers at the rate of Rs 33.70 per kg.

This situation prevailed before the implementation of GST. But after the implementation of GST, this price has increased to Rs 45-46 per kg.