MP Cabinet Decisions: Mandi fee on cotton reduced, increased on other produce; Cabinet takes several key decisions
Bhopal, June 10, 2026. Several significant decisions concerning farmers, the agricultural sector, and development schemes were taken during the Madhya Pradesh Cabinet meeting held on Tuesday at the Mantralaya, chaired by Chief Minister Dr. Mohan Yadav. Following the meeting, MSME Minister Chaitanya Kashyap briefed the media on the Council of Ministers' decisions.
Providing relief to cotton growers and the ginning industry, the Cabinet decided to reduce the mandi fee (market fee) on cotton from 1 percent to 0.5 percent (50 paise per hundred rupees). Minister Kashyap explained that ginning factories in the Burhanpur, Khandwa, and Nimar regions were facing higher costs compared to those in Maharashtra. The reduction in the fee ensures that cotton produced in the state is processed at local ginning units, benefiting both the industry and the farmers.
Conversely, the mandi fee on all general agricultural produce—excluding cotton—has been raised from 1 percent to 1.5 percent. The government estimates that this decision will generate an additional revenue of approximately ₹800 crore. The funds raised will be utilized for agricultural infrastructure, rural roads, cattle conservation, farmer welfare, and activities related to agricultural research and outreach.
The Cabinet also approved ₹235 crore to ensure the continuity of various schemes under the Department of Science and Technology. This move will accelerate the department's ongoing projects and innovation programs.
The meeting also addressed the availability and distribution system of fertilizers for the upcoming Kharif season. Chief Minister Mohan Yadav stated that there is an adequate supply of fertilizers in the state and assured that farmers would face no difficulties. To ensure this, nodal officers will be appointed to oversee the fertilizer distribution system in coordination with ministers, MLAs, and the administration.
The Chief Minister instructed all public representatives and officials to prioritize the interests of farmers and ensure the prompt resolution of agriculture-related issues.
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