MP Mandi Fee: ₹1.50 per ₹100 — What Changed and Who Still Pays the Old Rate
Short answer: Madhya Pradesh levies mandi fee at ₹1.50 for every ₹100 of sale value — 1.50% — revised upward from ₹1.00 under Section 19(1) of the Madhya Pradesh Agricultural Produce Market Act, 1972. Crucially, agricultural produce already carrying a rate of ₹1.00 or less continues at its existing rate, so MP runs two fee schedules simultaneously.
Two schedules, one mandi — the part that breaks billing
The revision did not replace every rate. It raised the general rate to ₹1.50 per ₹100 while explicitly preserving lower rates already applying to specific produce. The practical consequence:
- Some commodities in your mandi are billed at 1.50%.
- Others remain at 1.00% or below.
- Which is which depends on the notified schedule, not on a rule you can infer.
A single flat percentage applied across all commodities will be wrong on one side or the other — overcharging buyers on preserved-rate produce, or underpaying the Mandi Samiti on general-rate produce. The second error is the one that surfaces at audit.
The legal basis
| Item | Detail |
|---|---|
| Governing Act | Madhya Pradesh Agricultural Produce Market Act, 1972 (Krishi Upaj Mandi Adhiniyam) |
| Enabling section | Section 19(1) — empowers the state to fix and revise mandi fee |
| Revised rate | ₹1.50 per ₹100 of the price of agricultural produce |
| Previous rate | ₹1.00 per ₹100 |
| Preserved | Produce at ₹1.00 or less continues under its existing structure |
| Board | MP State Agricultural Marketing Board — mpmandiboard.gov.in |
Licences and related filings run through the state's e-Anugya portal.
Where MP sits nationally
| State | Market fee | Additional cess |
|---|---|---|
| Telangana | 1.00%, purchaser | — |
| Maharashtra | ~0.8–1%, per APMC | ~1% combined |
| Madhya Pradesh | 1.50% (1.00% preserved on some produce) | — |
| Haryana | 2%; 1% on 21 items; 0% horticulture | HRDF |
| Punjab | Legacy stack ~3% | RDF |
| Kerala · Bihar | None — no APMC levy | — |
MP sits in the middle: higher than the southern and western states, well below the Punjab–Haryana grain belt. Full comparison in our state-wise market fee and cess guide.
MP's commodity mix
Madhya Pradesh is India's largest producer of soybean, gram (chana) and garlic, and a major wheat and mustard state. That mix has two billing consequences:
- Oilseeds and pulses trade by weight with moisture and foreign-matter deductions. Those deductions apply per lot before the fee is calculated, so the order of operations on the patti matters.
- Wheat moves through MSP procurement, where the commission structure differs from private trade — the same split covered in our Punjab guide.
Verify before you bill
- Ask your Mandi Samiti for the current notified rate for your specific commodities, not the headline rate.
- Establish explicitly which of your commodities sit on the preserved lower rate and which moved to ₹1.50.
- Note the effective date of the revision. Bills raised before it must reproduce the old rate if reprinted.
- Re-check each financial year — these move by notification without much publicity.
MandiGrow stores mandi fee as an effective-dated rate per commodity group rather than one figure per organisation, so a two-schedule state bills correctly without a second set of books, and a mid-year revision applies going forward without rewriting history. See mandi software for Madhya Pradesh.
Corrections
If a figure here is out of date, email support@mandigrow.com with the notification reference and we will update this page and note the revision date.
Frequently Asked Questions
What is the mandi fee rate in Madhya Pradesh?
Madhya Pradesh levies mandi fee at ₹1.50 for every ₹100 of the sale value of agricultural produce, which is 1.50%. This was revised upward from ₹1.00 under Section 19(1) of the Madhya Pradesh Agricultural Produce Market Act, 1972.
Did MP mandi fee increase for all commodities?
No. The revision raised the general rate to ₹1.50 per ₹100 but explicitly preserved existing rates for agricultural produce already carrying a rate of ₹1.00 or less. Madhya Pradesh therefore runs two fee schedules at once, and which commodity sits on which depends on the notified schedule.
Which law governs mandi fee in Madhya Pradesh?
The Madhya Pradesh Agricultural Produce Market Act, 1972, also known as the Krishi Upaj Mandi Adhiniyam. Section 19(1) empowers the state government to fix and revise mandi fee, and rate revisions are issued as notifications under it.
Is MP mandi fee higher than other states?
MP sits mid-range nationally. At 1.50% it is above Telangana at 1% and Maharashtra at roughly 0.8–1%, but well below the Punjab and Haryana grain belt where market fee plus rural development fee historically reached far higher. Kerala and Bihar levy no market fee at all.
Where do I apply for an MP mandi licence?
Licences and related filings for Madhya Pradesh mandis run through the state’s e-Anugya portal at eanugya.mp.gov.in. The MP State Agricultural Marketing Board publishes Act, rules and notifications at mpmandiboard.gov.in.
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