Union Budget: Machine brewed cuppa may get dearer


Union Budget: Machine brewed cuppa may get dearer

Your cup of vending machine coffee at cafes, office pantries and commercial beverage counters could soon get more expensive, with the Budget withdrawing existing concessions on imported coffee roasting, brewing and vending machines.Equipment importers said the duty change follows currency-related pressures. “Basic customs duty on these machines is 10%, and with the exemption it was 7.5%, so the net change is roughly 2.5%. The bigger impact has come this year from the rupee’s depreciation against the dollar,” said Abhinav Mathur, founder of Kaapi Machines.“Machines are a big part of the cost structure…it affects per-cup economics. We will try to absorb as much as possible, but some part may eventually reach the menu,” M G Kaveri, who runs a cafe in Bengaluru, said.Premium and branded chains could feel the pressure more, as they rely on specialised equipment that needs periodic servicing.



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