IS 12% GST ON PICKLES REALLY JUSTIFIED?

Pickles have been an integral part of the Indian diet since the Harappan Civilization. From South to North, East to West, pickles serve both as a side dish and as a traditional method of preserving seasonal fruits and vegetables.

In 2025, the pickle market is estimated to be worth around ₹8,000 crore. Of this, the formalized sector (including brands) constitutes ₹3,500 crore (as per Euromonitor), while the unorganized sector accounts for an additional 50–60%, according to the Ministry of Food Processing Industries (MOFPI).

Moreover, pickles are a food item consumed across India, cutting across all income groups. Many people turn to pickles when other food options are unavailable. They offer health benefits, enhance flavor, and pair well with most Indian meals.

Being a regular food item, and eaten by large sections, it comes with over 12% GST where products like papads, honey, paneer, cream are treated under 5% GST category.

Now, let's look at the supply side of the pickle market. 

What Does The Unorganized Pickle Market Look Like?

The unorganized sector often comprises small and home-based enterprises that operate without GST registrations, trade licenses, or proper labeling—yet they continue to serve loyal local customers.

While there is limited government data on the unorganized sector, the presence of women selling homemade pickles and papads is clearly visible at village fairs, local markets, and residential society exhibitions.

How 12% GST On Pickles Affect Small Businesses?

• Compliance Burden: Most women entrepreneurs are lacking trading licence, GST Number, and an organized accounting system. A 12% slab forces them into legal registrations with costs they cannot absorb.
• Higher Final Price: GST pushes up the total cost. Small pickle businesses in India lack economies of scale to absorb tax, so the cost passes down to the customers. Thus, the consumers become the ones paying higher prices.
• Adulteration Risk: To maintain an optimum profit margin, some businesses may unwillingly slip into practices like adulteration in the form of preservatives or bulk chemical-based methods, compromising the quality, hygiene, and overall customer satisfaction.
• Difficulties for SMEs: SMEs generally operate in a market that is very price-sensitive. If they charge higher prices, it directly shows up in the sales number. Thus, for them to function smoothly they need a price that is affordable by most of the people.
• Limited Expansion: Pooling a wider base becomes difficult when the customers are price-sensitive, especially low-income households treating pickles as a daily staple and not luxury. This major chunk of the base is driven away because of higher pricing.

What began in 1959 as a humble initiative by seven women selling handmade papads has grown into a ₹1,600 crore powerhouse, empowering over 45,000 ‘Didis’ across India. Lijjat Papad is not just a brand; it’s a movement of women-led entrepreneurship and collective strength.

This remarkable journey proves that when a small business has a supportive ecosystem, it can transform into a national success story.

As FarmDidi, which is a community of rural women entrepreneurs, we urge policymakers to reconsider the 12% GST slab on pickles and bring it in line with other essential food items, perhaps at nominal 5% similar to papads.

Conclusion

The pickle industry in India is more than just a segment of the food market, it is a livelihood to many rural women and a staple in most Indian dining tables. The current 12% slab, we feel, disproportionately affects small businesses who already face challenges in scaling, compliance, and bag some profits.

Reducing the GST would not only align it with other items like papad, honey, and paneer, but rather it would be of help for these small enterprises by creating a more inclusive and supportive environment.