Pulse Mills Demand Mandi Tax Waiver in MP

29-Dec-2025 11:32 AM

Indore:  Considering the increase in operating costs and declining margins, the All India Pulse Mill Association has urged the Madhya Pradesh government to exempt pulse mills registered under MSME, particularly those purchasing pulses like lentils,

urad, moong, and chickpeas for processing purposes, from the mandi tax. The association states that this mandi tax is negatively impacting the demand and supply of small units in the state.

According to the association, the mandi tax levied on the purchase of pulses for processing purposes increases input costs.

This leads to a reduction in the working capital of the mills and weakens the competitive capacity of small and medium-sized pulse mills.

In a direct appeal to the state government, the association president said that since pulses are imported into Madhya Pradesh from outside the state for processing, and a mandi tax is levied on them, the profitability and scope of the state's pulse industry are continuously shrinking.

If the existence of pulse mills is to be maintained and their uninterrupted progress in Madhya Pradesh is to be ensured, the government should immediately withdraw the mandi tax.

The association revealed that in neighboring and competing states, the tax system for pulses is industry-friendly. In Chhattisgarh, the pulse industry is completely exempt from mandi tax.

There, even wheat, sorghum, millet, and maize are not subject to mandi tax. The same system needs to be implemented in Madhya Pradesh.