The All India Dal Mill Association has sounded an alarm, urging the Madhya Pradesh state government to provide urgent relief to small-scale pulse processing units. The association has formally requested an exemption from mandi tax for MSME-registered dal mills on key raw pulses brought exclusively for processing.
Mounting Costs Threaten Industry Viability
In a detailed representation to the authorities, the industry body highlighted a critical issue. The levy of mandi tax on raw pulses like masoor, urad, moong, and chana is severely hurting the financial health of small units. This tax, applied even to pulses sourced from outside Madhya Pradesh for processing within the state, has led to a significant increase in input costs.
The association explained that this additional burden strains the already tight working capital of these micro, small, and medium enterprises (MSMEs). Consequently, it weakens their competitiveness in the market, pushing many towards the brink of closure.
A Direct Appeal from the Industry
Suresh Agrawal, the president of the All India Dal Mill Association, made a direct and impassioned appeal to the state government. He stated that the mandatory mandi tax is directly responsible for the gradual decline of the dal industry within Madhya Pradesh.
"Because mandi tax is being levied on pulses brought from outside Madhya Pradesh for making dal, dal industries in the state are declining day by day," Agrawal said. He emphasized that for the survival and smooth operation of these vital food processing units, the abolition of this tax is essential.
Neighbouring State's Policy Adds to Pressure
The association bolstered its argument by pointing to the more favourable policies in neighbouring states, which create an uneven playing field. They specifically cited Chhattisgarh, which offers a complete exemption from mandi tax not only on pulses but also on other foodgrains like wheat, jowar, maize, and bajra.
This policy disparity places Madhya Pradesh's dal mills at a distinct disadvantage. Mills in the state face higher operational costs, making their final products less competitive compared to those from regions with tax exemptions. The association warns that without intervention, the industry's decline will accelerate, affecting local economies and employment.
