Madhya Pradesh Cabinet Approves ₹13,800 Crore Push for Farmers, Halves Cotton Market Fee

googleAdd CMV360 on Google

Madhya Pradesh halves cotton market fee and approves ₹13,800 crore for rural infrastructure, farmer welfare, road development, agricultural growth, and technology projects across the state.

Akansha Trivedi

By Akansha Trivedi

Jun 10, 2026 10:09 am IST
98.86 k
image
Madhya Pradesh Cabinet Approves ₹13,800 Crore Push for Farmers, Halves Cotton Market Fee

Key Highlights

  • Cotton market fee reduced by 50%.

  • ₹13,800 crore approved for development projects.

  • Farmers' Road Fund to receive stronger support.

  • Better rural roads to reduce transport costs.

  • Thousands of cotton farmers expected to benefit.

The Madhya Pradesh government has announced a series of major decisions aimed at strengthening the agriculture sector, improving rural infrastructure, and boosting the rural economy. In a Cabinet meeting held at the Secretariat under the chairmanship of Chief Minister Dr. Mohan Yadav, projects worth nearly ₹13,800 crore were approved for infrastructure, technology development, and farmer welfare.

The decisions are expected to provide direct benefits to thousands of farmers across the state while supporting long-term rural development.

Cotton Market Fee Reduced by 50%

One of the most significant decisions taken during the Cabinet meeting was the reduction of the market fee on cotton by 50 percent. The move is expected to provide relief to both cotton farmers and traders by lowering transaction costs and encouraging higher trading activity.

The state government believes that reducing the mandi fee will make cotton trading more competitive, improve market efficiency, and increase the chances of farmers receiving better prices for their produce. The decision is also expected to ensure smoother movement of agricultural commodities through markets across the state.

As Madhya Pradesh is among India's major cotton-producing states, the reduction in market fees is likely to directly benefit thousands of cotton growers.

Major Boost for Farmers Road Fund

The Cabinet also approved measures to strengthen the Farmers' Road Fund, a key initiative focused on improving rural road connectivity. The move is expected to accelerate the construction, repair, and upgradation of roads in rural areas.

Better road infrastructure will help farmers transport their crops to mandis and markets more efficiently, reducing travel time and transportation expenses. Improved connectivity is also expected to minimize post-harvest losses caused by poor road conditions and delays in reaching markets.

₹13,800 Crore Investment for Agriculture and Rural Infrastructure

The state government has reaffirmed its commitment to increasing investments in agriculture and rural development. Out of the approved amount of nearly ₹13,800 crore, a substantial share will be allocated to agricultural infrastructure, rural development projects, and technology-driven initiatives.

These investments are expected to strengthen the state's agricultural ecosystem while creating new employment opportunities in rural regions. The government aims to improve productivity, enhance market access, and support long-term economic growth in villages across Madhya Pradesh.

Direct Benefits for Farmers

According to government officials, the reduction in cotton market fees has been designed to encourage trade and create a more competitive marketplace for farmers. Lower costs in the supply chain can help improve market participation and support better price realization for cotton producers.

The strengthened Farmers' Road Fund will further support farming communities by making transportation easier and more cost-effective. Farmers will be able to move their produce to markets faster, helping them avoid delays and reduce logistics-related expenses.

A Significant Step Towards Rural Development

Agriculture experts believe the combined impact of lower cotton market fees and improved rural road infrastructure could significantly strengthen the state's rural economy. Increased trade activity, better market access, and improved logistics are expected to create a more farmer-friendly environment.

The decisions approved by the Madhya Pradesh Cabinet are being seen as an important step toward accelerating rural development, improving agricultural competitiveness, and enhancing the overall welfare of farmers. With substantial financial support and a focus on infrastructure, the initiatives have the potential to become a major milestone in the state's agricultural growth journey.

Also Read: Rising Gram and Basmati Prices Strengthen Agricultural Commodity Market; Export Demand Drives Gains

CMV360 Says

The Madhya Pradesh government's latest decisions are expected to provide significant support to farmers and rural communities. The reduction in cotton market fees will encourage trade and improve price realization, while the strengthened Farmers' Road Fund will enhance rural connectivity. With nearly ₹13,800 crore approved for infrastructure, agriculture, and technology projects, the state aims to boost rural development, create employment opportunities, and build a stronger agricultural economy for long-term growth.

Follow Us
YTLNINXFB

You May Like