News Capsule: Madhya Pradesh Raises Mandi Fee, Provides Relief on Cotton
09-Jun-2026 03:11 PM
News Capsule: Madhya Pradesh Raises Mandi Fee, Provides Relief on Cotton
★ The Madhya Pradesh government has revised the Agricultural Produce Market Committee (APMC) fee structure, increasing the mandi fee on most agricultural commodities from 1% to 1.5%, while providing significant relief to cotton producers.
★ Under the new arrangement, agricultural commodities other than cotton will attract a mandi fee of ₹1.50 for every ₹100 worth of trade, compared to the earlier ₹1. The state government estimates that the increase will generate approximately ₹835 crore in additional annual revenue, which will be utilized for infrastructure development and cattle welfare initiatives.
★ At the same time, the government has reduced the mandi fee on cotton from 1% to 0.5%. In addition, the levy on cotton bales has been cut from ₹1 per bale to 50 paise per bale.
★ The move is expected to encourage cotton farmers to market their produce within Madhya Pradesh rather than transporting it to neighboring states, particularly Maharashtra, thereby boosting in-state trade.
★ Market observers believe that the reduction in cotton fees could increase cotton arrivals in Madhya Pradesh mandis, while the higher mandi fee on other commodities may raise transaction costs for traders and processors.