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What is the mandi fee on produce sold in Chandigarh market?

RE Asked by Reshma Pillai from India

Quick Answer

The mandi fee on produce sold in Chandigarh market is levied under the Punjab Agricultural Produce Markets Act, 1961, and varies based on the type of agricultural produce being sold.

Detailed Legal Analysis

The mandi fee on produce sold in Chandigarh market is levied under the Punjab Agricultural Produce Markets Act, 1961, and varies based on the type of agricultural produce being sold. The mandi fee is essentially a market fee charged by the Agricultural Produce Market Committee (APMC) for the services and facilities provided to the farmers and traders in the market.

In Chandigarh, the mandi fee structure is as follows:

  • The mandi fee is typically set at 2% of the sale value for most agricultural produce.
  • For certain specified commodities, the fee may be different based on government notifications.
  • The amount is charged at the point of sale when the produce is sold in the market yard or to a licensed buyer.

Key points regarding the mandi fee include:

  • The fee is applicable to all agricultural produce, including fruits, vegetables, grains, and other horticultural products.
  • Farmers or sellers must obtain a registration with the APMC to sell their produce in the mandi, which involves a nominal fee.
  • Once the produce is sold, the buyer is responsible for paying the mandi fee to the APMC.
  • Failure to pay the mandi fee may lead to penalties or inability to sell produce in the market.

Relevant provisions of the law include:

  • Punjab Agricultural Produce Markets Act, 1961 - This act governs the regulation of markets for agricultural produce and the collection of market fees.
  • Section 13 - This section outlines the powers of the state government to prescribe the rates of market fees.
  • Section 14 - This section provides for the establishment of market committees and their responsibilities regarding the collection of fees.

It is advisable for farmers and traders to stay updated with any changes in the mandi fee structure or rates as notified by the Chandigarh administration or the respective APMC, as these can vary over time or based on specific agricultural policies.

Legal Provisions Referenced

Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.

Last updated: October 4, 2026 AI-assisted answer

Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.

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