New Delhi, Oct 8 : Kerala's spices, coir industry, and food-processing sectors are set for a huge boost due to recent goods and services tax (GST) reforms that reduced rates on several key products, the government said on Wednesday.

The GST rate cuts resulted in cost reductions of up to 11 per cent for cashew processing, for spices including Malabar pepper, and also for instant coffee, boosting margins for producers and processors across the state, according to an official statement.

The rate cuts are expected to make products and services more affordable, enhance export competitiveness, and strengthen income opportunities across value chains.

"From the spice gardens of Idukki and Wayanad to the coir factories of Alappuzha, the fisheries clusters of Kochi and Kannur, to the cashew corridor of Kollam, all of Kerala is set to gain. Beyond goods, the reforms extend to services, with tourism, Ayurveda, and wellness industries witnessing tax relief that enhances affordability and global appeal," the statement said.

The new GST slabs lowered taxes on cashew processing from 12 per cent and 18 per cent to 5 per cent; instant coffee and preparations from 18 per cent to 5 per cent; Malabar pepper from 18 per cent to 5 per cent, extracts; masala mixes from 18 per cent to 5 per cent; and processed pineapple products from 12 per cent to 5 per cent.

Kerala's cashew processing industry sector caters to domestic snacking and gifting markets, with products now more affordable under the revised GST rates, the statement said. The rate cut strengthens Kerala's cashew processors by improving margins and competitiveness.

Further, the GST reforms are expected to make Kerala's pepper more price-competitive in global markets and strengthen the position of smallholder farmers within the spice value chain.

The coir sector, including GI-tagged Alleppey Coir GI products such as mats, matting, ropes, and geotextiles, is also expected to see cost reduction by 11 per cent. The coir industry employs around 3.7 lakh people, with women making up about 80 per cent of the total workforce, the statement noted.

/IANS