New Delhi, Sep 27 (NationPress) The latest adjustments to the GST rates are poised to significantly enhance Bihar’s economy, which is deeply rooted in agriculture, handlooms, handicrafts, and food processing. This move aims to alleviate the financial strain on consumers, bolster rural livelihoods, empower MSMEs, and improve competitiveness within the export sector, as stated in an official release on Saturday.

From makhana cultivators in Mithila to silk artisans in Bhagalpur, dairy producers associated with Sudha, and engineers at Madhepura’s rail factory, these GST reforms are anticipated to impact both traditional and modern sectors across the state.

The positive effects will manifest across various industries including agriculture, handlooms, handicrafts, dairy, fertilizers, rail manufacturing, bamboo and cane crafts, as well as burgeoning fields like AYUSH and honey.

The reforms will particularly benefit the agricultural sector, with products such as Makhana, Shahi Litchi, and processed foods experiencing favorable GST reductions, thereby aiding countless farmers and MSMEs.

Additionally, Sudha will provide relief to its 9.6 lakh farmers through GST-exempt milk and paneer, and reduced rates on ghee, butter, and ice cream.

Handlooms and crafts such as Bhagalpuri silk, Madhubani art, Sujini, and Patharkatti stone carving will also gain a competitive edge, while farmers will benefit from lower costs for fertilizers, micronutrients, and machinery, with expected savings of 7-13%.

In a significant industrial boost, rail hubs, AYUSH products, and honey clusters are expected to see cost reductions of 6-13% in the state.

Bihar is responsible for 80-90% of India’s makhana production, supporting around 10 lakh families involved in its cultivation and processing. The crop primarily thrives in the Mithilanchal region in northern Bihar, cultivated in pond systems across Darbhanga, Madhubani, Purnea, Katihar, Saharsa, and neighboring districts.

With the GST on makhana-based snacks decreasing from 12% to 5%, processors and exporters are projected to benefit from a cost reduction of approximately 6-7%, enhancing the product's competitiveness in both domestic and international markets.

Muzaffarpur’s GI-tagged Shahi Litchi, which is also cultivated in Vaishali, Champaran, Sitamarhi, and Samastipur, supports thousands of small farmers and seasonal laborers.

Bihar contributes nearly 35% of India’s litchi production. With the GST on juices, jams, and pickles cut from 12% to 5%, a cost saving of 6-7% is anticipated, promoting local processing and improving access to niche markets in the Gulf.

Bihar’s MSME clusters in Patna, Hajipur, and Bhagalpur handle a diverse array of processed foods, with micro-units and women-led SHGs engaged in producing snacks, pickles, bakery items, and sauces.

Brands such as Sudha serve Bihar and eastern India, while makhana-based products are penetrating pan-India markets.

The industrial estate in Bhagalpur alone accommodates over 40 food and agro units, with new food parks and bottling projects generating employment opportunities. With the GST on biscuits reduced from 18% to 5% and on namkeens and sauces from 12% to 5%, prices are anticipated to decrease by 6-11%, thereby boosting demand and enhancing MSME profit margins.

The dairy sector, a cornerstone of Bihar’s rural economy, supports around 9.6 lakh mostly marginal farmers through COMFED (Sudha), with significant female participation in collection and SHGs.

Processing, chilling, transport, and retail create thousands of jobs across the state, especially in hubs like Patna and Barauni. With UHT milk and paneer now free from GST, and ghee and butter reduced from 12% to 5%, alongside ice cream dropping from 18% to 5%, these products are expected to become 5-13% cheaper.

These reductions will alleviate financial pressures on dairies, reinforce cooperative networks, and enhance affordability for households throughout Bihar and eastern India, according to the official statement.