GST will have inflationary pressure on tea, says Mistry
Kolkata, Aug 24 (IANS) Implementation of the Goods and Services Tax (GST) regime will have an inflationary impact leading to increase in tea prices, Tata Global Beverages’ Chairman Cyrus P. Mistry said on Wednesday.
“GST will have an inflationary impact on the prices of tea, but this will be across the board,” he said while responding to a query of a shareholder at the company’s 53rd Annual General Meeting. He mentioned initially that GST will have inflationary impact on the company’s current coffee and tea business as coffee and tea attract low tax.
He, however, said there might be “short term impact” of GST but the “long term benefit is significant”.
Mistry said the industry body has made representations for a favourable rate as coffee and tea are widely consumed beverages cutting across economic strata. The company is looking to tap e-commerce platforms to sell its products.
“We are also seeing shifts in the consumption patterns and emergence of alternate channels and e-commerce platforms and your company is looking to tap this segment,” Mistry said, addressing shareholders at the annual general meeting.
He said the company will be coming out “soon with something in the digital space”. It is also looking at opportunities in beverages space to expand its business, he said.
Tata Global Beverages Ltd (TGBL) reported a 51.94 per cent rise in its consolidated net profit in the June quarter to Rs 119.52 crore from Rs 78.66 crore a year ago. Net sales increased 3.84 percent to Rs 1,711.48 crore from Rs 1,648.12 crore a year ago.