Festive Boost: Nuts and Dried Fruits Consumption Expected to Rise After GST Cut to 5% 

Festive Boost: Nuts and Dried Fruits Consumption Expected to Rise After GST Cut to 5%

The consumption of nuts and dried fruits is anticipated to surge during the current festival season following the government’s decision to cut the Goods and Services Tax (GST) rate on these items from 12% to 5%.

Key Impact and Benefits

• Price Reduction: The GST cut effectively makes dried fruits and nuts, which are popular for gifting and personal consumption during festivals like Diwali, about 6–7% cheaper at the retail level. This directly enhances affordability for consumers.
• Stimulating Demand: The lower tax burden is expected to stimulate a significant surge in sales volume, providing a much-needed boost to the sector. Traders and industry bodies believe that the increased affordability will lead to higher overall consumption.
• Trade Benefits: The reduction is beneficial for traders, wholesalers, and small and medium enterprises (MSMEs) involved in the processing and packaging of these products, as it will likely increase their sales volumes and formalize more transactions within the tax system.
• Consumer Shift: Since the products are often used as healthier substitutes for traditional sweets and are central to festive celebrations, the price cut ensures they remain a preferred and competitive choice for the consumer.