Madhya Pradesh launches new scheme to negate price risks on crops

Representative Image

The Madhya Pradesh government on Tuesday launched Bhavantar Bhugtan Yojana. The scheme will compensate farmers for sales below the Minimum Support Prices (MSP) set by the central government.

As per a Live Mint report, the scheme will initially support eight crops that are procured only at a low volume by the governments such as oil seeds and pulses.

The scheme is aimed at dealing with the price risks faced by the farmers. The scheme is being seen as an attempt by the government to pacify the farmers ahead of next year's state assembly elections.

The state had witnessed violent protests by farmers demanding loan waiver a few months back. The high yield during the 2016-17 had led to a drastic fall in prices which caused the unrest.

The farmers will be compensated whenever the notified crops are sold below the MSP. But this compensation will be based on the modal prices. The modal prices are determined by calculating the average market price of the crop for a period of two months in Madhya Pradesh and two other states.

To get the benefit from the scheme the farmers will have to enroll their crops at village level co-operative societies along with Aadhaar and bank account numbers. The registration will begin on 11th September.

“We are looking at enrolling nearly half of the 6.5 million farmers in the state who grow these crops,” said Rajesh Rajora, agriculture secretary of Madhya Pradesh, adding that scheme may soon be extended for horticulture crops.