MP CM announces Bhavantar scheme for soybean, farmers demand procurement at MSP

Madhya Pradesh Chief Minister Mohan Yadav
| Photo Credit:
ANI

Madhya Pradesh Chief Minister Mohan Yadav on Friday announced that the State government would implement Bhavantar Yojana for the soybean crop this year under which farmers are supposed to be paid the “differential” amount between market price and the minimum support price (MSP).

Yadav said that the government is committed to ensuring farmers get a fair price for the soybean crop.

Based on suggestions from farmers unions, the State government has decided to provide the Bhavantar Yojana benefit to soybean cultivators this year, the chief minister said in a statement. Farmers will continue to sell soybeans in the markets as before, and if the produce is sold at a price lower than the MSP, the government will compensate them for the loss under the Bhavantar Yojana, he said.

Against soybean’s MSP of ₹5,328 per quintal for 2025-26 season, farmers in MP sold at average ₹4,121/quintal during September 1-25, whereas the all India average is ₹4,141/quintal. But, the mandi (agriculture market yard price of ₹3,837/quintal) on Friday was lower than this month’s average. The arrival of fresh soyabean in mandis across the State was 9,080 tonne on Friday, data show.

On the other hand, Kedar Sirohi, a former member of the State’s Agricultural Advisory Council said that the announcement of the Bhavantar Bhugtan Scheme for soybean crop has revived the bitter experiences of 2017.

“Differential” price

Seeking farmers’ soyabean should be purchased at MSP as in the past, Sirohi said that there is flaw in the calculation of “differential” price.

“The scheme promises to pay farmers the difference between the market price and the MSP. But, actually the difference is based on a monthly modal price, making the scheme fall short of its promise. The data, calculations and basis of which differential price are arrived by the government were not made public,” he alleged. Sirohi also said that this model is less profitable for farmers and more profitable for soybean processing plants and traders.

He reminded the government that in 2017 farmers felt cheated by the scheme. “Due to the limited timeframe (60 days) of the scheme’s implementation period, there was a sudden surge in arrivals leading to excess supply over demand. It resulted in a sharp drop in market prices by ₹800-1,200 per quintal (30-35 per cent), when international prices remained stable,” Sirohi said.

Farmers received payment of the difference amount, which was also less than actual “difference” with MSP, after 1-1.5 months of delay.

“Before implementing the scheme, online feedback should be taken from farmers on whether they want to sell their produce under the Bhavantar Yojana or directly at the MSP. If farmers do not agree, arrangements should be made to purchase at the MSP instead of the Bhavantar Yojana,” Sirohi said in a statement.

Published on September 26, 2025