** Consumer staples producers Colgate-Palmolive India COLG.NS and Dabur DABU.NS rise 1.67% and 0.6%, respectively

** Indian government considering eliminating the 12% goods and services tax slab and reclassifying many items taxed at that bracket into the lower 5% bracket, NDTV reports

** Restructuring would target items such as toothpastes, umbrellas, sewing machines, kitchen utensils, report says

** Government believes lower prices could boost sales, and ultimately increase long-term GST collections, adds report

** YTD, COLG shares down 8.6% while Dabur down 4.2%

(Reporting by Ananta Agarwal in Bengaluru)

((Ananta.Agarwal@thomsonreuters.com))