Chhattisgarh Mandi Tax Exemption
Department of Industries, Government of Chhattisgarh · Central government
Agricultural and food processing and biofuel/ethanol large enterprises get 100% mandi tax exemption for 5 years, up to ₹5 crore a year.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
Under the Chhattisgarh Industrial Development Policy 2024-30, the Chhattisgarh Mandi Tax Exemption extends financial relief to new large enterprises that set up or expand operations in the state. The incentive targets investment and growth in sectors such as agricultural and food processing, alongside biofuel and ethanol production.
A 100% exemption from mandi tax lowers both initial and recurring operational costs for eligible businesses, which in turn supports their competitiveness and profitability.
The scheme also encourages enterprises to procure raw materials from local mandis and directly from producing farmers, generating a multiplier effect on the rural economy.
Through this programme, the Government of Chhattisgarh signals its intent to build an investor-friendly environment, draw large-scale manufacturing and processing units, and support job creation and sustained economic prosperity across the region.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Chhattisgarh
- New Large enterprises - Active in agricultural and food processing, or in the biofuel/ethanol sectors - Not classified as an ineligible industry under the policy
How to apply
- **Step 1: Examine the Policy**: New large enterprises seeking this exemption should begin by reading the Chhattisgarh Industrial Development Policy 2024-30 in full. The policy document sets out the eligibility conditions in detail, along with the application forms and supporting documents needed to claim industrial incentives of various kinds, the Mandi Tax Exemption among them. - **Step 2: Assemble the Application**: Collect every document required, which generally covers proof of enterprise registration, a detailed project report, verification of fixed capital investment, and any additional forms or declarations specified in the policy. - **Step 3: File the Application**: Send the completed application package to the state authority designated for industrial incentives in Chhattisgarh, as named in the policy guidelines. - **Step 4: Approval and Start of Exemption**: Once the application is reviewed and approved, the Mandi Tax Exemption is formally granted, and the 5-year exemption period begins on the date of the enterprise's first documented raw material purchase, in line with the policy terms.
Frequently asked questions
What is the Mandi Tax Exemption scheme?
Under the Chhattisgarh Industrial Development Policy 2024-30, the Mandi Tax Exemption scheme grants a 100% exemption from mandi tax on agricultural products. It is intended to draw new large enterprises into the agricultural & food processing and biofuel/ethanol sectors by lowering their operational costs.
Who is eligible to claim this exemption?
The benefit applies only to New Large enterprises operating in agricultural and food processing or biofuel/ethanol sectors. Since the policy may list ineligible industries, applicants should check their industry code against the policy document.
What is the maximum financial benefit I can receive from this exemption?
An enterprise may claim up to ₹5 Crore (₹50,000,000) in exemption each year, and the total exemption availed across the full 5-year period is capped at 75% of the unit's Fixed Capital Investment.
How long does the mandi tax exemption last?
The exemption runs for 5 years, counted from the date the enterprise makes its first purchase of raw materials — whether from State mandis, directly from producing farmers, or from other designated units.
Where can I find comprehensive details regarding the application procedure for this incentive?
The Chhattisgarh Industrial Development Policy 2024-30 sets out the full application process, covering the forms, supporting documents and submission guidelines. Download the policy document from the Invest Chhattisgarh website and read it in full for the correct instructions.
Does this exemption apply to all agricultural products?
The policy covers "agricultural products" but does not list specific exclusions, so enterprises should refer to the full policy document to confirm which agricultural products qualify for the mandi tax exemption.
Sectors
- Agri Food Rural
- Mandi Tax Exemption
- Agricultural Processing
- Food Processing
- Biofuel
- Ethanol
- Large Enterprise
- Chhattisgarh
Details last verified on 16 September 2026. Source: the issuer's published information.