Mandi Prices Today

State Wise Mandi Prices

Understanding India's Mandi Market - Operation, Commodities, and Key Markets

Agriculture is an important sector of the Indian economy. All kinds of agricultural commodities are grown here. While some harvested produce is consumed in the country, some are exported. To support the immense production, India has developed a vast network of Mandi Markets.

What Is Mandi Market?

In India, Mandi means a place of wholesale sale or a big market. It is the designated space where farmers, manufacturers, and artisans bring their produce (grains, vegetables, fruits, spices, etc.) to be auctioned and sold directly to buyers. This platform actually connects millions of farmers to larger buyers like wholesalers, retailers, and distributors and creates an essential link between rural producers and broader markets across India and beyond.

The Mandi market play a vital role in India's agricultural supply chain and is subject to particular legal frameworks that ensure reasonable prices and efficient sales procedures. The majority of farmers opt to sell their perishable goods at local mandis.

Here, items are sold directly by manufacturers/farmers/ artisans at a fair price, generally in bulk. This enables them to save money on transportation and sell their produce while it is still fresh. As we all know, commodity auctions enhance the likelihood of obtaining better pricing. Farmers wouldn't auction their produce if mandis didn't exist. Thus, an agri trader can get ample opportunities to grow their mandi business.

Historically, mandis have provided a centralized marketplace where open bidding determines pricing, promoting supply chain stability and transparency. But recent laws have given farmers more choices, enabling them to sell outside of these approved marketplaces.

By state legislation, Agricultural Produce Market Committees (APMC) oversee these marketplaces to ensure pricing transparency and guard against middlemen's exploitation. Mandi system is operated in various places across the states. To operate within a market, the traders are given licenses. Mall owners and wholesale traders, and retail traders are not allowed to purchase the produce directly from farmers.

As per the 2019 census, there are 7,600 APMC mandis in India. But the figure is far below what is needed for mandi commerce. To save farmers from having to travel far to sell their produce, it is now necessary to expand the number of APMC mandis to 42,000.

How A Mandi Market Operates?

Let's look into how a Mandi market operates, and the different commodities traded here

• APMC Licensing: Farmers sell through authorized intermediaries in specified mandis. Only licensed agents are allowed to facilitate sales in these marketplaces.
• Auction Procedure: The items are examined, graded, and then put up for auction to the highest bidder, who is typically a wholesaler or large purchaser after it arrives.
• Price Determination: In any market transaction between a seller and a buyer, the price of the good or service is determined by supply and demand in a market. In the mandi, supply and demand have a major influence on prices. The government sets minimum prices (MSP) for some goods, which affects the price on the market floor.
• The Function of Middlemen and Agents: Commission agents, often referred to as arhtiyas, are essential in enabling transactions and receiving payment in the form of fees or commissions.

Major Commodities Traded

India's mandi markets trade a variety of agricultural commodities, including:

• Grains: Wheat, rice, maize, barley
• Vegetables and Fruits: Potatoes, onions, tomatoes, apples, bananas
• Spices: Turmeric, cumin, coriander, cardamom
• Cash Crops: Cotton, sugarcane, jute, tea
• Pulses: Lentils, chickpeas, green gram, black gram
• Oilseeds: Mustard, soybeans, groundnut, sunflower

Major Mandi Markets in India

• Azadpur Mandi, Delhi: One of the largest fruit and vegetable markets in Asia, where farmers from across the country buy fruits and vegetables. Farmers bring 4000 to 5000 trucks of fruits and vegetables here every day, sourced from all around the country.
• Ghazipur Mandi: The second-largest wholesale vegetable and fruit market in Delhi.
• Vashi APMC Market, Mumbai: Major market for fruits, vegetables, grains, and pulses.
• Unjha Mandi, Gujarat: Known for trading spices, especially cumin and fennel.
• Madhya Pradesh Mandis: Significant for wheat, pulses, and soybeans.
• Narela Mandi, Delhi: Key markets for grain and wheat.
• Lasalgaon, Maharashtra: Known as the largest onion market in Asia.
• Chili Market, Guntur, Andhra Pradesh: One of the largest chili markets in India.

Things to Know About the Mandi Market System

• Activities at Mandi usually begin early in the morning.
• Some Mandis has facilities for sorting, grading, and packing produce.
• Produce such as wheat, potatoes, and onions are kept in mandis or special storage spaces to sell later at a better price.
• The price of produce varies depending on supply and demand. When supply is high, prices are low, and when supply is low, prices are high.
• The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 (FPTC Act) aims to benefit farmers by permitting them to sell to any buyer, establishing private markets, and eliminating middlemen.