On February 1, 2026, Finance Minister Nirmala Sitharaman presented the Union Budget 2026. This year's budget comes at a time when households are more conscious of food costs, the quality of the food they eat, and where to find healthier food. Food manufacturers are pushing up prices, farmers are adapting to changing climates, and buyers are dedicating greater regard to their grocery bills.
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The main lesson from the budget's focus on food and beverages is that while some things will become more affordable, others will become more costly, and Indian households will undoubtedly feel the effects of this. Many of the new policies are focused on lowering production costs and supporting domestic manufacturing, which should help strengthen the economy as a whole. Here’s a closer look below:
Commodities That Will Become Affordable
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Biogas Mixed CNG
The Finance Minister made the recommendation that when determining central excise duty, the full value of biogas be excluded. This makes biogas-based CNG more competitive with fossil fuels and lowers the cost of production. By supplying agro-residues, bovine dung, and organic waste, the reform further deepens the connection between agriculture and clean energy, providing farmers with extra revenue prospects.
Microwave Ovens
Yes, microwaves are getting cheaper as well, since certain components used in the production of microwaves are said to be exempt from basic customs charges. The goal of the action is to lower manufacturing costs by reducing reliance on imported components and increasing value addition in the domestic consumer electronics industry.
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Processing Inputs For Seafood
The duty-free import cap for seafood processing has been raised from 1% to 3%, according to the budget data. This gives processors more freedom to source equipment and raw materials, which could lower input costs and boost the way they compete across borders.
Commodities That Will See A Price Hike
LPG Cylinders For Commercial Use
Since February 1, 2026, the cost of a 19-kg commercial LPG cylinder has increased by ₹49 to ₹1,740.50 in Delhi. While domestic LPG costs remain unchanged, this increase will affect eateries, lodging facilities, cafés, and street food vendors.
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Coffee Brewing & Roasting And Vending Machines
Coffee roasting, brewing, and vending machine tax exemptions have been eliminated by the government; these devices will probably become more costly. The new tariff regulations may increase setup and replacement costs for establishments where coffee is essential, as cafés, restaurants, workplaces, and beverage counters rely significantly on these, often with imported models.
Alcohol
The tax collected at source (TCS) for alcoholic drinks sellers has been adjusted to a common 2%. This makes the system more business-friendly and simplifies adherence. It reduces the administrative burden on distributors even though it doesn't significantly reduce retail alcohol expense.
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She added that the government was thinking about decreasing taxes on a few imports from other nations, which would result in lower prices for Indian customers. The tariff cut will probably result in lower prices for goods like wine, beer, and some other spirits that are imported from Europe. Pears and kiwis, fruit juices, non-alcoholic beer, and processed foods are also a part of this.
Nirmala Sitharaman covered many significant topics in her 81-minute budget address, including the rare earth corridors, the extension of India's semiconductor mission, the increase in Securities Transaction Tax (STT) on Futures and Options, and the deadline for filing income tax returns.