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

SH Asked by Shobha Kapoor from India

Quick Answer

The mandi fee on produce sold in Gwalior market is determined by the Madhya Pradesh Agricultural Produce Market Act, 1972, which governs the regulation of agricultural markets in the state.

Detailed Legal Analysis

The mandi fee on produce sold in Gwalior market is determined by the Madhya Pradesh Agricultural Produce Market Act, 1972, which governs the regulation of agricultural markets in the state. The mandi fee typically ranges from 1% to 2% of the sale price of the produce, depending on the type of agricultural commodity being sold.

Key points regarding mandi fees in Gwalior include:

  • Definition of Mandi Fee: Mandi fee is a charge levied on the sale of agricultural produce in the market yard, which is used for maintaining the market infrastructure and providing services to farmers and traders.
  • Applicable Rates:
    • The standard mandi fee is generally 1% of the sale price for most agricultural commodities.
    • For certain high-value produce, the fee may be set at 2%.
  • Market Committee: The fee is collected by the Market Committees established under the Madhya Pradesh Agricultural Produce Market Act, 1972.
  • Exemptions:
    • Some specific categories of agricultural produce may be exempt from mandi fees based on state government notifications.
    • Farmers selling their produce directly to consumers may also avoid this fee.
  • Payment Process:
    • Sellers must register with the local market committee to sell their produce.
    • Payment of the mandi fee is typically made at the time of sale, either through cash or online payment methods as specified by the market committee.
  • Regulatory Authority: The Madhya Pradesh Agricultural Produce Market Committee (APMC) oversees the implementation of mandi fees and regulations under the Act.

For further details, one can refer to the Madhya Pradesh Agricultural Produce Market Act, 1972, particularly Sections 5, 6, and 7, which outline the establishment of market committees, the levy of fees, and the utilization of funds collected. It is advisable for traders and farmers to stay updated with any changes or amendments to the fee structure as notified by the state government or the local market committee.

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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