The proposed budget for the 2026-27 fiscal year has imposed significant duties and taxes on nutritious foods such as natural honey, cashew nuts, and sweet corn, making these health-conscious choices increasingly unaffordable for middle-class consumers.
While global health experts emphasise balanced and natural food intake to ensure public health and nutrition, the budget guidelines paint a contrasting picture.
Packaged natural honey, previously free of supplementary duty, will now attract a 10 per cent levy. The demand for honey has been rising as a healthy alternative to sugar and for boosting immunity. Concerned stakeholders fear the price per kilogram of branded honey will rise significantly in the market.
The budget proposes a sharp increase in import duties on cashew nuts, widely used in diets and nutritious food lists. Import duty on shelled cashew nuts has been raised from 1 per cent to 25 per cent in a single stroke.
At the same time, the existing 5 per cent import duty on unshelled cashew nuts has also been proposed to increase to 25 per cent. Additionally, a new 15 per cent VAT has been imposed on cashew nuts, where previously the rate was zero.
Importers believe that with such a steep hike and the addition of new VAT, cashew nuts will become a complete “luxury item” for ordinary people.
A new 15 per cent VAT has been imposed on sweet corn, which is popular among children and recognised as highly nutritious. This VAT was not applicable before.
As a result, the price of processed sweet corn will also strain the budgets of ordinary consumers, the budget guidelines indicate.
