Madhya Pradesh Reclassifies Mandis After 10 Years, Promising Better Farmer Facilities

Madhya Pradesh Reclassifies Mandis After 10 Years, Promising Better Farmer Facilities

Madhya Pradesh has undertaken a significant reclassification of its agricultural produce market committees, the first in approximately a decade. This move, effective from August 19, 2026, is intended to bolster the administrative and financial capacities of the mandis, ultimately leading to improved facilities for farmers within the market premises.

The reclassification is based on the average agricultural produce arrivals and average income of the mandis over the past three financial years. This comprehensive revision was finalized by the Madhya Pradesh State Agricultural Marketing Board under the guidance of Chief Minister Dr. Mohan Yadav and the direction of Minister for Farmers Welfare and Agriculture Development, Adal Singh Kansana.

Currently, the state operates 259 agricultural produce market committees and 298 sub-markets. The previous classification was done in 2016, and substantial changes in agricultural produce arrivals, mandi income, trading activities, and marketing systems over the past ten years necessitated this new classification.

Mandis Categorized into Four Grades

Under the new classification, the 259 market committees have been divided into four categories: ‘A’, ‘B’, ‘C’, and ‘D’, based on their average income and agricultural produce arrivals. This new system places 47 market committees in the ‘A’ category, 63 in ‘B’, 81 in ‘C’, and 68 in ‘D’.

Specific benchmarks have been set for each category. ‘A’ category mandis require an average income exceeding ₹6 crore and average agricultural produce arrivals of over 2.50 lakh metric tons. ‘B’ category mandis have an income limit of up to ₹6 crore and arrivals between 1.25 to 2.50 lakh metric tons.

For ‘C’ category mandis, the average income ranges from ₹1.50 crore to ₹3 crore with arrivals between 0.50 to 1.25 lakh metric tons. ‘D’ category mandis have an average income below ₹1.50 crore and arrivals below 0.50 lakh metric tons.

Positive Shift in Mandi Performance Noted

The data from the new classification highlights significant improvements in mandi performance. Compared to the 2016 classification, the number of ‘A’ category mandis has increased from 39 to 47, ‘B’ category from 42 to 63, and ‘C’ category from 56 to 81.

Conversely, the number of ‘D’ category mandis has decreased from 122 to 68. The department reports that 54 mandis have been upgraded to higher categories due to improved performance. This reduction in ‘D’ category mandis is seen as an indicator of growing economic activity within the mandi system.

Impact on Administrative and Financial Powers

The reclassification will have a direct impact on the administrative structure and financial powers of the market committees. Adjustments to officer and staff setups can be made according to the mandi’s category, enhancing their operational efficiency.

Furthermore, the financial powers of the market committees will be increased, enabling them to develop facilities for farmers based on local needs. This will strengthen the infrastructure within mandi premises, streamline trading activities, and facilitate agricultural produce marketing.

Expansion of Licenses and Trading Activities Expected

The potential for the organized expansion of licenses for hamals (porters) and weighers, among other necessary permits, will also increase. This will lead to more effective management of trading activities within the mandis.

The growth in trading activities is expected to provide farmers with better options and a more organized system for selling their produce, benefiting traders, hamals, weighers, and other stakeholders associated with the mandis.

Safeguard: No Mandi Will Be Downgraded This Fiscal Year

A crucial safeguard has been implemented to protect the interests of farmers and market committees. Under this provision, no market committee will be placed in a lower category during the current financial year 2026-27 (until March 31, 2027).

This measure shields mandis that might have otherwise seen their category reduced based on the new standards, providing them an opportunity to adapt and strengthen their administrative and financial systems.

Key to Success: Farmer-Centric Facilities

The process for implementing the new classification has been finalized following an order issued by the Commissioner-cum-Managing Director of the Madhya Pradesh State Agricultural Marketing Board, Kumar Purushottam. However, the true success of this reclassification hinges on the effective utilization of the enhanced administrative and financial powers.

Simply changing categories will not resolve farmers' issues. Market committees must focus on developing facilities based on the actual needs of farmers. Strengthening amenities such as cleanliness, drinking water, sheds, parking, weighing systems, lighting, security, and organized produce marketing within mandi premises is crucial.

The mandi system plays a vital role in Madhya Pradesh's agricultural economy. This new classification represents a step towards making the system more modern, transparent, and farmer-centric. The decrease in ‘D’ category mandis is a positive sign of increased economic activity, but lasting benefits will only be realized if the increased income and arrivals are used to develop better facilities for farmers.