State Still Paying Mandi Charges After GST

In the budget presented on Wednesday, for the financial year of 2018-19, food processing industry has felt deep disappointment over the demand for removing the Mandi charges on pulse and oil crops. Industry representative has said that even after the implementation of goods and service tax (GST) from July 1, they have to pay double taxation in the states due to the non-withdrawal of Mandi fees. At the rate of 2.20 percent, all the Mandi charges are being charged for all major crops in India.

Indore-based organization Soyabean Processors Association of India (SOPA) chairman said, the government has assured the food processing industry that after the implementation of goods and service tax (GST), the Mandi fees will be removed, but we are disappointed to not see it. There is no provision mentioned in the budget presented. He also said that Madhya Pradesh is the largest Soyabean producing state in the country. Food processing industry has to pay 5 percent GST and 2.25 percent market tax on Soyabean in the province. Because of this, the food industry of Madhya Pradesh is lagging behind in the competition with the other major Soyabean producing states like Maharashtra and Rajasthan. This is also causing problems to farmer somewhere.

Finance minister Jayant Malaiya, who presented the budget on Wednesday has said, I have never ever given any assurance of removal of mandi charges as its related to the agriculture department. He said that before the budget, the department of agriculture did not have any correspondence with him, regarding the mandi fees. If such a correspondence had been done, then he could make appropriate provision in the budget regarding the mandi charges.

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President of All India Dal Mill Association, Suresh Agrawal, a leading organization of lentil mills said, It is a matter of great irony and dissonance that the state government is charging the mandi charges up to the pulses coming from other states and from abroad. He also said that the state government has promised the industry and business world would get relief from the mandi charges. But despite the demand made several times, the promise is yet not being completed. Agarwal said that if the mandi charges get removed, then the pulse price rate will also get reduced, which will make the common man plate cheaper.