MSP vs Mandi Price: What's the Difference?
The MSP is a pre-announced price at which government agencies will buy certain crops — a floor meant to protect farmers. The mandi price is what the open market actually pays on the day. Mandi rates can sit above, at, or below MSP depending on supply and demand.
Two different things
Minimum Support Price (MSP) is set by the Government of India ahead of each season for a defined list of crops. It signals the price at which official agencies stand ready to procure, so farmers are cushioned if markets crash.
Mandi price is the live wholesale rate discovered at the market yard through actual buying and selling. It moves daily with arrivals, quality, demand and sentiment.
How they interact
When market prices are strong, mandi rates run above MSP and farmers sell in the open market. When prices are weak — a glut, a demand slump — mandi rates can fall below MSP, and procurement (where active) becomes the more attractive option. For crops without effective procurement, the mandi price is what farmers realise regardless of MSP.
Why a mandi rate can be below MSP
MSP is announced but not guaranteed everywhere for every crop — procurement infrastructure is uneven across states and commodities. Quality below FAQ, distance from a procurement centre, or limited buying can all leave open-market rates under the floor.
Reading our pages with MSP in mind
MandiPrices shows live mandi rates, not MSP. If you know the MSP for a crop, comparing it to our modal price tells you whether the open market is currently rewarding or under-paying versus the floor — especially useful for wheat and paddy around harvest.