Union Budget 2023 – 2024: Highlights for FMCG Sector
Finance Minister Nirmala Sitharaman presents Union Budget 2023.
Finance Minister Nirmala Sitharaman presents Union Budget 2023.
The Union Budget 2023 announcements made for FMCG Sector are as follows:
1) The Government will implement Free Food Scheme for the next 1 year. The government will also expand market in the dairy products and fishery products.
2) The government will launch a sub-scheme under PM Matsya Sampada Yojana with an outlay of Rs 6,000 crore to further enable those involved in fisheries.
3) There would be a 16 per cent increase in NCCD (National Calamity Contingent duty) on certain cigarettes.
4) The FMCG industry has recognised the potential of rural demand and now is an excellent time to invest in additional capital to improve supply-chain efficiency at the local level.
5) In its upcoming reform push, the government should consider lowering personal income tax rates, as this would increase disposable income and stimulate the demand cycle.
FMCG was up more than 24 per cent from the previous Union Budget to today's budget and it was up more than 4 per cent in the previous six months.
BSE FMCG Index was trading higher, up 0.75 per cent at a level of 16,227.39 on Wednesday and the benchmark Indian indices were also trading higher. Top FMCG stocks were Bannari Amman Sugars Ltd (up 2.68 per cent), ITC Ltd (up 2.06 per cent), and Varun Beverages Ltd (up 1.99 per cent).