Mandi Arbitrage & Transport Cost Calculator
Compare the local farm-gate price with a distant APMC mandi rate after freight, labour, market fees, commission and transit loss.
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Please note: These figures are estimates for planning only. Interest rates, scale of finance, insurance premium rates, subsidies and market charges are set by banks, government notifications and mandi committees and change from season to season. Confirm the current figures with your bank, insurance company, CSC or mandi office before making a decision.
A higher price at a faraway mandi is only better if it is still higher after the costs of getting there. Enter both prices, the distance and your costs, and see the net price per quintal at the mandi, the extra money you would make and the break-even mandi price.
About the Mandi Arbitrage & Transport Cost Calculator
Prices for the same crop can differ by hundreds of rupees per quintal between the village trader and a larger APMC mandi or an e-NAM market. Taking produce further can pay – but freight, loading, market fee, commission and a little weight loss on the way all come out of the higher price.
This calculator puts both options side by side:
- Local sale – quantity × farm-gate price, with no further costs.
- Mandi sale – what is left after transit loss × the mandi price, minus market fee and commission (as a percentage of the sale), freight (per tonne per km), labour and your trip costs.
The break-even mandi price tells you the lowest mandi rate at which the trip is still worth it. Carrying larger loads per trip spreads the fixed costs and makes distant mandis more attractive.
How to use the Mandi Arbitrage & Transport Cost Calculator
- 1 Enter the quantity and the local price you are offered.
- 2 Enter the mandi price (modal price from Agmarknet or e-NAM) and the distance.
- 3 Enter freight per tonne per km, labour per quintal and other trip costs.
- 4 Enter the mandi fee and commission charged to the seller and press Compare.
The formula we use
Local income = Quantity × Local price
Mandi gross = Quantity × (1 − Transit loss) × Mandi price
Mandi net = Mandi gross × (1 − Fee − Commission) − Freight − Labour − Other costs
Freight = Tonnes × Distance × Rate per tonne-km
Break-even mandi price = (Local income + Freight + Labour + Other) ÷ (Quantity sold × (1 − Fee − Commission))Worked example
50 quintals of mustard. The local trader offers ₹5,400; the mandi 60 km away pays ₹5,800. Freight ₹4 per tonne-km, labour ₹20 per quintal, other costs ₹500, mandi fee 1%, commission 2%, transit loss 0.25%.
- Local sale = 50 × 5,400 = ₹2,70,000.
- Mandi gross = 49.875 q × 5,800 = ₹2,89,275; fee and commission = ₹8,678.
- Freight = 5 t × 60 km × ₹4 = ₹1,200; labour and other = ₹1,500.
- Net at the mandi = ₹2,77,897 (₹5,558 per quintal) – ₹7,897 more than selling locally.
- Break-even mandi price = ₹5,638 per quintal.
Things to keep in mind
- Prices move daily. Check the mandi's arrivals and modal price the day before you travel.
- Quality decides the price. Clean, graded, dry produce gets the top of the price range.
- Payment terms matter. Prompt payment at the mandi may be worth more than a slightly higher local price paid later.
- MSP procurement centres may be the best option when market prices are below the minimum support price.
Frequently asked questions
Is it worth taking crop to a distant mandi?
Only if the mandi price is above the break-even price this calculator shows. The bigger the load and the shorter the distance, the more likely it pays.
What is mandi fee?
A market fee charged by the Agricultural Produce Market Committee on sales in the mandi. The rate and whether the buyer or seller pays differ from state to state.
How do I check mandi prices?
Daily arrivals and prices for most APMC mandis are published on the Agmarknet portal and the e-NAM website and app.
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