Wed Sep 03 14:45:02 UTC 2025: Okay, here’s a news article summarizing the provided information, written from an Indian perspective and styled for a general news audience:
**Rice Millers Association Urges Government to Scrap GST on Small Rice Packets**
**COIMBATORE, September 3, 2025** – The Federation of All India Rice Millers Association is appealing to the central government to remove the 5% Goods and Services Tax (GST) levied on pre-packed and pre-labeled rice packets up to 25 kilograms. The appeal was made in a memorandum submitted to Union Finance Minister Nirmala Sitharaman on Wednesday in Chennai.
The association argues that the tax disproportionately affects the average consumer, who typically purchases rice in smaller quantities of 1 kg, 5 kg, 10 kg, or 25 kg packets. They contrasted this with institutional buyers, who purchase rice in bulk and are exempt from the GST. “Hence, more than 50% of retail consumers buy unpacked rice.”
The association also raised concerns about the 5% GST applied to rice bran, a byproduct used in solvent extraction plants. Given that most rice mills are Micro, Small, and Medium Enterprises (MSMEs), the Federation suggests the tax should only apply to the solvent extraction plants themselves, not the rice mills supplying the bran.
Finally, the Federation is seeking greater clarity from the government regarding packaging sizes, permissible combo packets, and labeling requirements to ensure compliance and streamline the rice milling and distribution process.
First Piper 