Opposition Congress lambasted the BJP government over the incident which took place at Lateri Mandi in Vidisha district two days ago.
The deceased farmer was identified as Moolchand Maina, resident of Bijukhedi village in the district.
"My father had come to the Mandi to sell chana (gram) four days earlier and was waiting for the produce to be weighed and sold. He collapsed on Thursday morning while still waiting for his turn," said Narmada Prasad, his son.
Sub Divisional Magistrate Ashok Manjhi said the situation arose as several farmers reached the Mandi at the same time, and await their turn.
"Moolchand was registered with the Mandi and he had received an SMS, asking him to bring the crop for weighing. But many farmers arrived at the same time, so they had to wait," Mr Manjhi said.
A compensation of Rs four lakh would be provided to Mr Maina's family, he said.
Senior Congress leader Jyotiraditya Scindia targeted chief minister Shivraj Singh Chouhan over the incident.
"This is the situation of farmers in my state, where they have to keep waiting for weighing up their harvest. Why the food providers have to die every day. @ChouhanShivraj ji, don't do politics and perform Rajadharma otherwise history will never forgive you," Mr Scindia tweeted.
Leader of Opposition in the Assembly Ajay Singh claimed that farmers have to wait for four or five days to sell their produce at Mandis across the state.
Mandis are governed by the Madhya Pradesh Mandi Board, a state agency.