Union Budget 2026: The Union Budget for 2026-27 has introduced several changes that will impact households and food-related businesses nationwide. While many of the measures are designed to lower production costs and promote domestic manufacturing, others involve price adjustments that will directly affect restaurants, vendors, and consumers alike.
From reduced prices on biogas-based CNG and microwave ovens to revised import limits for seafood processors, alongside a hike in commercial LPG prices, the budget presents a varied outlook for the food and beverage sector.
Union Budget 2026: THESE Items Have Become Cheaper
- Biogas-Enhanced CNG
The Finance Minister has proposed a revision that excludes the full value of biogas when calculating the central excise duty. This change will reduce the cost of producing biogas-based CNG, making it more competitive with fossil fuels. The reform also enhances the link between agriculture and clean energy, offering farmers the opportunity to earn additional income by supplying agro-residues, cattle dung, and organic waste.
- Microwave Ovens
Microwave ovens will be more affordable, as the basic customs duty on certain parts used in their manufacture has been removed. This initiative aims to boost value addition within the domestic consumer electronics industry and decrease reliance on imported components, ultimately lowering production costs.
- Seafood Processing Inputs
To aid seafood exporters, the duty-free import limit for inputs used in seafood processing has been raised from 1 per cent to 3 per cent . This change provides processors with more flexibility in sourcing raw materials and equipment, potentially reducing costs and improving their global competitiveness.
Union Budget 2026: THESE Items Have Become More Expensive
- Commercial LPG Cylinders
From February 1, 2026, the price of a 19-kg commercial LPG cylinder has risen by Rs 49, bringing the new price in Delhi to Rs 1,740.50. This price revision, part of the monthly price adjustment, will impact businesses such as restaurants, hotels, cafés, and street food vendors that depend on LPG for their daily operations. Domestic LPG cylinder prices, however, remain unchanged.
- Coffee Roasting, Brewing, and Vending Machines
The government has removed the exemptions on coffee roasting, brewing, and vending machines, which is expected to increase the cost of such equipment. These machines are widely used in cafés, restaurants, office spaces, and commercial beverage counters, many of which rely on imported models. With the new duty structure in place, businesses may face higher investment or replacement costs, leading to increased operational expenses for establishments where coffee service is a key offering.
Union Budget 2026: Food Industry Reaction To 2026-27 Budget
Commenting on the Budget, Deepanshu Manchanda, Managing Director at Zappfresh, stated, "The Union Budget 2026-27 introduces a pragmatic and future-oriented change for India’s seafood and protein markets by increasing the duty-free import limit for specified inputs used in seafood processing from 1 per cent to 3 per cent of FOB export value. This move will help stabilise supply, reduce costs, and make it easier for processors and retailers to manage inventory, especially when domestic seafood availability is seasonal or inconsistent."
They added, "For businesses like ours, handling multiple protein categories, including seafood alongside chicken and mutton, this will bring greater flexibility in sourcing, reduce price volatility, and ensure consumers have access to quality products year-round. Seafood is part of our product range alongside chicken and mutton, and we've seen customer demand for consistent quality and variety. Import duty relaxation does not replace our strong domestic fishing base rather, it supplements it by filling supply gaps and helping maintain consistent consumer choice without large price swings."
Overall, this policy change supports industry stability, enhances export potential, and benefits consumers by enabling year-round supply of diverse protein options while reinforcing India’s position as a reliable participant in global seafood trade,.