MP Dal Mills Want Cut in Mandi Tax on Pulses Imported from Other States

Dal millers in Madhya Pradesh have petitioned the state government to lower the tax on pulses imported from other states, claiming that increased mandi taxes are causing businesses to flee to neighboring states. Madhya Pradesh's mandi tax is 1.7 percent, about double that of Maharashtra's (0.8 percent) and more than three times that of Gujarat (0.5 percent).

When the pandemic hit in 2020, the state government imposed a 1.7 percent mandi tax, according to Suresh Agarwal, President of the Indore-based All India Dal Mills Association. Dal mills were immune from mandi tax until 2020, he claimed.

Bihar and Delhi have no mandi tax, whereas Uttar Pradesh charges 1.5 percent, which is lower than MP, Agarwal said.

High Competition

Pulses processed by mills in Madhya Pradesh, such as tur dal and chana dal, are now around $1 per kilogramme more expensive as a result of the higher mandi tax, according to Agarwal.

Pulse processors in Gujarat, Maharashtra, Karnataka, and Andhra Pradesh, among other states, have faced fierce competition, resulting in lower capacity utilization.

"We have encouraged the State Government to lower the mandi tax to 0.5 percent in order to make us more competitive," Agarwal added. The industrial organization has written to the Shivraj Singh Chouhan government in this regard.

Madhya Pradesh has about 700 processing units and is one of the largest growers of pulses such as chana and tur, among others.

Dal manufacturers in the state occasionally buy pulses from neighbouring states to turn into dals, such as moong, tur/arhar, and urad beans.

India is the world's largest importer of pulses, consuming 27% more than the rest of the world. Madhya Pradesh, India's greatest producer, is responsible for 32 percent of the country's total output.

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