In Madhya Pradesh regulatory framework for agricultural marketing is unique
and consists of two distinct set of measures. One of these is development and
regulation of primary markets, popularly called "Regulated Markets"
and the second set is the regulation of market through a series of legal
Regulation of primary markets was taken up as an institutional innovation and
construction of well laid-out market yard was considered as an essential
requirement of effective implementation of the regulation programme. As the
programme was a developmental-cum-legal measure, it took considerable
time to extend it to a wider scale. Berar Cotton and Grain Market Law, 1897 will
be long remembered as the first law which provided the basis for the regulation
of markets all over the country. Till 1950 there was not any regulated
market in the state. The then Government of Madhya Bharat passed the
Madhya Bharat Agricultural Produce Market's Act in 1952, this was modelled
mostly on the lines of Bombay Act. With the reorganisation of the state in 1956,
more than one Act was operative simultaneously in different regions of the state. The
programme got momentum after passing of the Madhya Pradesh Agricultural Markets Act, 1960
which came in force w.e.f 15th October, 1960.
Further in accordance with the recommendations of the National Agriculture
Commission, the M.P. State Agricultural Marketing Board
i.e. MPSAMB (also known as Mandi Board) has come into existence w.e.f 1973 under
the provisions of M.P. Krishi Upaj Mandi Adhiniyam 1972. The Mandi Board is a
three tier organisation of which the first tier consists of regulated markets.
These are in the nature of physical and institutional infrastructure at the
first contact point for farmers to encash their farm marketable surpluses.
Presently in the state there are a total of 538 regulated markets of which 257
are main wholesale markets having elaborate infrastructure also known as Krishi
Upaj Mandi and the balance 287 having lower level of infrastructure known as Sub Mandi. In addition
these there are haat bazars in the rural areas where farmers
and other people congregate periodically to sell their farm marketable surpluses
and buy their essential requirements. These haats have not been provided the
needed physical infrastructure so far. For administrative purpose Sub Mandies are controlled by the respective Krishi Upaj Mandi of the area.
The second tier of the MPSAMB structural channel is the Regional
which have their demarcated area of operation and the Mandies situated in the
said area of operation are affiliated to the Division office for administrative
control . There are 7 Division Offices in the State individually having a
minimum 18 to a maximum of 49 Mandi Committees under its jurisdiction. At the State level the said two tiers are amalgamated with MPSAMB i.e.
Mandi Board which has its office at the state capital i.e. Bhopal.
The State has the distinction of eliminating middlemen from the process of
agricultural marketing, adopting the Citizen charter to ensure right of
information to the public and installing the democratically elected governing
bodies in the Mandi committees.
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