“Consumers are thinking twice about buying a product worth rupees 5” Obviously there is some serious issue in the economy of the country..!!
This comes from the intervention when Parle G Category Head stated that the largest biscuit maker of the country would be soon abandoning up to 10,000 of its employees as a result of the exorbitant downturn in economy and heavy tax intrusion
Ever since the goods and service tax has been implemented across the nation, since 2017 the destination based concept to levy tax as a manifestation of value addition has certainly not been able to meet its prerequisite in the entire predominant sphere.
Especially when it comes to the domain of FMCG that is the fast moving consumer goods which accounts for the 4th most largest segment of Indian economy ,but ever since the imposition of this GST tax has rendered substantial challenges in uploading the invoices invoice price details on account invoice price details on account of these products .
Being the India’s largest biscuit makers Parle with major brands such as Parle-G Marigold and Monaco are amidst growing tension over the slowdown in the Indian economy which is just bound to give more in securities. These ambient changes drastically came notable ever since the tax imposition was raised to a higher level. With the substantial increments in the GST being applicable on the consumer goods category head executive Mayank Shah set an interview in which he cited that the company is facing severe implications of GST as a result of which even the biscuit with priced below rupees 5 for hundred kg is being thought to buy over because of the reduced quantity. Perceptive consumers are responding to this ramification avidly with the decline in the consumption.
Not only Parle but various others companies of the similar dominance such as Britannia are complaining about these slowing down blue.
The worsening of situation has been substantively made into concrete terms that if governments do not intervene with this problem in a strategic manner soon, as a result of this serious envisage Parle G would be bound to cut off about 10,000 employee workforce from their units..
Earlier there was a 12% tax implied on 100 kg biscuit but due to new interventions now the tax has been raised to 18% per hundred kg biscuit which indeed has hampered the market to a very large extent.
The drastic effect in the Slow Down of the Indian economy can be prominently seen with this instance over company like Parle G who is having a hold of about 90 years on the deck with about 1, 00,000 people employed under its domain. As result of these increments even the companies have been forced to make a rise of 5% in their prices margins.
Downturn in the economy and the increment in the tax imposition have led to restrict the production houses and even the supply chain.
The imposition of such high GST tax levied on the biscuit has led to abridge the production to a very small extent especially from the rural areas. Consumer goods industry is losing steam from the rural areas to a large extent which is cited as the major niche for most of revenue generation.
With the increase instance pertaining to the ambiguity of the Indian economy the need of the hour is indeed for the strong and an urgent intervention from the government’s side so that companies don’t take such as crucial step and at least the ingenuous people of the country do not fall prey to this subsidized slump in economy.
