Of Taste and Taxes

With mere days to go before the Union Budget is delivered by the government, members of the food and beverage industry are hoping for a change.
For representational purpose
For representational purpose

With mere days to go before the Union Budget is delivered by the government, members of the food and beverage industry are hoping for a change. While policy changes over the last few efforts have seen some efforts by authorities to cut through the red tape of bureaucracy and the maze of rules, regulations and by-laws that the hospitality sector often finds itself mired in, things are definitely peachy-keen yet.

The Indian economy may have opened up to the world’s markets nearly three decades ago, but high import duties, over-regulation and other factors are hampering the restaurant business’s potential. Chef-consultant Bakshish Dean finds the labyrinthine processes of wading through the fine print of licences and permits definitely detrimental to the business, for domestic players as well as potential foreign investors. As someone who’s consulted several Indian as well as international food brands and chains, he’s had more than enough run-ins with archaic rules and bureaucratic hurdles. 

“When we were introducing Johnny Rockets to India, everything got held up because, according to restrictions, we couldn’t import the premium ice creams we needed to make the brand’s signature shakes,” he recalls, noting that it was after he finally worked with a local ice cream manufacturer to get the appropriate quality of product that Johnny Rockets gave the go-ahead. Chef Sabyasachi Gorai, who was instrumental in introducing Mediterranean and Japanese cuisines (through the Olive group, among other brands) to Indian diners, says restaurants serving cuisines from abroad have always suffered. 

“We had to jump so many hoops to convince authorities to let us import quality products like meats, nuts, oils, and other ingredients. And there are still many barriers left,” says Gorai. He explains,“The government feels they need to protect domestic producers and suppliers, but don’t understand that allowing foreign products into the market will drive competition and lead to domestic players upping their game. Cars made in India today can compete with foreign brands, and that only started happening once the government eased restrictions and duties. Imagine if they had forced everyone to keep driving Ambassadors. So, why should the restaurant industry be treated differently?”

Business as Usual
High import duties, over-regulation of ingredients allowed into India, and other factors are hampering the restaurant industry.

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