First Private Mandi should be established in M.P. after new Act

Bhopal : Chief Minister Shri Shivraj Singh Chouhan has said that the first private mandi of the country should be established in Madhya Pradesh after the formation of new Mandi Act by the Central Government. For this, after passing of Madhya Pradesh Krishi Upaj Mandi Act (Amendment) Bill-2020, prepared in the state, prompt implementation should be ensured in this matter. This Act will prove beneficial for farmers and traders both, he added.

Charges to set up Private Mandi


Application Charge

(In Rupees)

License Charge

(In Rupees)

Performance Guarantee

(In Rupees )

Minimum Area

Private Market Yard



10 lakh

2 Hectare

Private Market Sub Yard



5 lakh

Direct Purchase

(Marketing Collection) Centre



5 lakh

CM Shri Chouhan was holding discussions on the provisions of Madhya Pradesh Krishi Upaj Mandi

Act (Amendment) Bill-2020 in a high level meeting at Mantralaya today. Minister for Agriculture Shri Kamal Patel, Minister of State for Farmers Welfare and Agriculture Development Shri Girraj Dandotiya, Chief Secretary Shri Iqbal Singh Bains, Additional Chief Secretary Shri K.K. Singh, Principal Secretary Shri Ajit Kesri and other officials were present at the meeting.

Now mandis can be established in private sector

Chief Minister Shri Chouhan said that as per the new act, any individual having necessary basic infrastructure, who is not a defaulter of any bank or financial institution will be able to set up private market yard, private market sub-yard and direct purchase centre. For this, individuals are required to obtain license from the government.

Same day payment to farmers is compulsory

Chief Minister Shri Chouhan has informed that one of the salient features of this act is that trader is required to make the payment to farmer on the same day after the purchase of crops. Only after the payment to farmer, trader will be able to transport the agriculture produce.

21 additional definitions added

Principal Secretary Shri Ajit Kesri has informed that the two definitions of the old act have been deleted from the Amended Mandi Act and 21 new definitions have been added. There were 24 definitions in the old act. Now, in place of ‘Mandi Area’, ‘Mandi Premises’ will be defined (Excluding Election Work). The power of Mandi Committees will be limited to Mandi premises only. Mandi charge will not be imposed on arrival of produce.

Key points of Madhya Pradesh Krishi Upaj Mandi Act Amendment Bill-2020

Concept of regulation of Mandi Campus in place of Mandi Area.

Government Mandis/Up-Mandis, all types of Private Market Yards/Market Sub-Yards, Direct Purchase Centre and Deemed Market are included in Mandi Campus.

Outside the Mandi premises, all agriculture transactions in ‘Trade Area’ will be conducted as per the ordinance of Government of India.

Posting of Director, Agriculture Marketing and all rights pertaining to government/private/deemed mandis and licensing of traders besides regulation.

Power of all mandi committees limited to the concerned mandi yard/up-mandi yard.

Power for proper functioning of arrangements only in Mandi premises to Mandi committees. All power related to regulation with Director, Agriculture Marketing.

All check posts outside mandi premises abolished.

Jurisdiction of power of Mandi Board limited to development of mandi premises and activities related to mandi personnel.

Market fees to be fixed by state government.

No mandi charges on arrival of agricultural produce.

Apart from Direct Purchase Centre, sale and purchase of agricultural produce in all other government/private/deemed mandis through auction only.

Main provisions for private mandi trade license and registration.

Arrangement of integrated license system for trade of notified agricultural produce in state.

Director, Agriculture Marketing or authorized Officer/Licensing authority.

Director empowered with all rights for regulation of trade and affiliated activities.

Trade License- Application Charge Rs. 500, License Charge Rs. 5000, Period 10 years.

Performance Guarantee- Minimum Rs. 3 lakh or equivalent to maximum purchasing capacity of a day, whichever is more.

Performance Guarantee for Fruits and Vegetables, Minimum Rs. 50 thousand or equivalent to maximum purchasing capacity of a day, whichever is more.

Period of issuance of license- 7 days and period of renewal is one working day.

License holder will maintain regular accounts of each transaction of sale-purchase and storage of notified agricultural produce.

Same day payment against agricultural produce purchased from farmer.

Madhya Pradesh Krishi Upaj Mandi (Setting up of Private Market Yard, Private Market Sub-Yard and Direct Purchase Center).

Major provisions of Rule 2020

Provision of license for setting up and running private market yard, private market sub-yard and direct purchase centre (marketing collection centre).

“Private Market Sub-Yard” means warehouse, silo, cold storage or other such structure or place, which is set up, run and managed by an individual having the prescribed basic infrastructure and facilities.

“Direct Purchase (Marketing Collection) Centres” means centres which will be run and managed by an individual or firm with the approval given under these rules, on the basis of mutual consent for the purchase of agricultural produce of farmers.

Licensing authority – Director, Agriculture Marketing.

License period – 20 years for private yard and private market sub-yard and 10 years for Direct Purchase (marketing collection) Centre.

Fifty percent performance guarantee will be taken for Direct Purchase (Marketing Collection) Centre run by FPOs / Agriculture Cooperative Societies.

Period of disposal of license application – 30 days for Private Market Yard / Market Sub Yard.

License will be considered approved in the event of decision not being taken for license/approval/ cancellation within the stipulated period.

Period of three years will be given to complete the construction work from the date of approval of license and an application with performance guarantee will have to be given to start the mandi within three years.

Period of disposal of application for license of Direct Purchase (Marketing Collection) Centre – 7 days.

The infrastructure / basic amenities required for Private Market Yard, Private Market Sub Yard and Direct Purchase (Marketing Collection) Centre will have to be built by the licensee.

Price fixation process – in private market yard and private market sub yard – will be done through auction and in direct purchase (marketing collection) centre- with mutual consent of buyer-seller.

Inspection rights – The director or a subordinate officer authorized by him.

The licenses of all private direct purchase centres presently issued by the Mandi Boards / Mandi Committees shall not expire from the date of effect of these rules, instead shall be deemed to have been issued under these rules and will be renewed under the new rules.

The licensee will determine and demonstrate the standard operating procedure and ensure transportation of agricultural produce only after payment to the farmer.


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