State reduces mandi fee to 1% and waives farmer welfare charge; industry hails move as revival boost for Chhattisgarh’s “Poha City”
Published on: November 12, 2025
By: BTNI
Location: Rajnandgaon, India
Rajnandgaon, long known as “Poha Nagari” (the City of Poha), has earned a special identity across India for its high-quality and flavorful flattened rice. The district’s Poha products reach almost every corner of the country. However, in recent years, the industry faced growing economic challenges due to rising power tariffs and heavy mandi fees, which reduced its competitiveness.
Responding to these long-standing concerns, the Chhattisgarh government has announced a major policy reform — slashing the mandi fee on paddy used in Poha processing from 1.5% to 1% and providing a complete exemption from the Krishak Kalyan (Farmer Welfare) Fee. This reform, implemented under Section 69(1) of the Chhattisgarh Agricultural Produce Market Act, 1972, came into effect on November 6, 2025, through a notification issued by the Department of Agriculture Development and Farmers’ Welfare.
Raman Singh’s Efforts Recognized
Local industrial associations and traders have attributed this relief to the persistent efforts of Dr. Raman Singh. Acting upon representations from CAIT and Poha producers, Dr. Singh had raised the issue at the government level, resulting in the decision to reduce mandi charges.
During his recent visit to Rajnandgaon, industrial representatives and Poha producers called on Dr. Singh at his official residence to felicitate him and express gratitude for his proactive role in supporting local industries.
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Economic and Social Impact
According to Raju Daga, District President of CAIT Rajnandgaon, “This decision will provide significant financial relief to Poha processors and farmers alike. It will increase paddy demand, boost rural income, and promote local employment.”
Senior CAIT member Sanjay Tejwani added, “Lower mandi fees will reduce production costs and help small producers regain competitiveness.”
Poha producer Vishnu Prasad Lohia welcomed the move, calling it “a step that strengthens both the Poha industry and the government’s ‘Vocal for Local’ initiative.”
Other local industry figures — Bhavesh Agrawal, Sohan Devangan, Rajendra Jain, Ashok Pandey, and Rajesh Jain — echoed that the decision will ensure farmers receive fair value for their produce while giving Rajnandgaon’s traditional Poha sector a renewed edge over competitors from other states.
Administrative Implementation
The Chhattisgarh State Agricultural Marketing Board has directed its divisional offices in Raipur, Durg, Bilaspur, Ambikapur, and Jagdalpur to inform all subordinate market committees and ensure compliance with the revised fee structure.
A Revival for “Poha Nagari”
The reform is being celebrated across Rajnandgaon’s business community as a turning point for the district’s signature industry. Producers hope the cost reduction will help small and medium Poha units flourish again, sustaining livelihoods and restoring Rajnandgaon’s identity as India’s Poha capital.
