ITC Limited’s food division is set to gain from the recent Goods and Services Tax (GST) rationalization, with the company announcing price reductions across its nutritional and packaged food portfolio effective September 22.
The GST Council has revised rates into a simplified two-tier structure of 5% and 18%, bringing several food items under the lower slab. ITC said it will pass on the benefits to consumers through price cuts on products such as biscuits, ghee, and flavored milk.
“The far-sighted GST reforms provide a shot in the arm for ITC Foods’ strategy framework. This will help nutrition reach people by making the products more affordable,” said Hemant Malik, Executive Director, ITC. He added that the move is expected to boost consumption, particularly ahead of the festive season.
The company clarified that during the transition period, products with both old and new MRPs may be available in the market.
ITC’s FMCG revenue touched around ₹22,000 crore in FY25, with a strong focus on developing nutrition-rich, value-added products. The price cuts, Malik said, are aligned with the company’s long-term strategy to expand affordability and accessibility in the food segment.
Industry watchers believe the move will not only strengthen ITC’s competitive positioning but also accelerate demand in the run-up to the festive season when food and FMCG sales typically surge.