Mohan Jat, a farmer from Chhapri village in Madhya Pradesh’s Sehore district, made a drastic decision on a bright September morning — he ran a tractor over his standing soybean crop. The reason: plummeting prices in the local markets. “Prices had fallen so low that even harvesting wouldn’t cover the costs,” he said, explaining his desperate move.
That very same day, Chief Minister Dr. Mohan Yadav announced the revival of the Bhavantar scheme in Sagar district — a government initiative aimed at protecting farmers from losses caused by market volatility. The scheme promises to compensate farmers for the difference between the market price and the minimum support price (MSP) if their produce, like soybeans, sells below the MSP.
Soybean prices in Madhya Pradesh have fallen sharply, forcing some farmers to destroy their crops. Experts point to crop losses from yellow mosaic disease, poor-quality seeds, and excessive rainfall, along with smaller cultivated areas this year. Market pressures and delayed government support have made matters worse, leaving farmers struggling to cover even basic harvesting costs.
The central government had set the new MSP for soybeans at ₹5,328 per quintal in May. The Chief Minister explained that if a farmer sells at ₹5,000, the government would compensate the remaining ₹328 per quintal.
Yadav said farmers must register to benefit from the Bhavantar scheme. Soybeans will still be sold in local mandis as before, and any gap between the MSP and the sale price will be transferred directly to farmers’ bank accounts. While many farmers welcomed the announcement, others warned it had come too late — without quick registration they said the scheme could fail to deliver.
Voices of Protest
Mohan is not the only farmer in the state whose crop has been damaged. Earlier, on Saturday, September 20, when Union Agriculture Minister Shivraj Singh Chauhan was on a tour of Madhya Pradesh, some farmers from Sehore district informed him about crop damage. The Union Minister then called the Sehore Collector and other officials, instructing them to conduct a crop survey.
In Neemuch district, farmers’ crops have been damaged due to yellow mosaic. This disease, spread by white fly (Bemisia tabaci), causes crop leaves to turn yellow and can reduce crop production by up to 100%. On Tuesday, September 23, farmers reached the Collectorate demanding 100% compensation for crops damaged due to the disease. They threatened that if the administration doesn’t meet their demand within 7 days, they will stage a major protest.
Similarly in Ratlam, farmers demanded compensation of ₹11,000 per bigha without conducting a survey.
According to a survey conducted by the Soybean Processors Association of India (SOPA), approximately 6% of crops in the state have been damaged due to excessive rainfall. Meanwhile, production has been affected in 15% of the area. Executive Director DN Pathak told an English daily that production in varieties like JS-9560 has been affected due to yellow mosaic, small grains, and empty pods. According to the association’s estimates, soybean cultivation this year has been done in 6.5% less area compared to last year.
The CM also acknowledged the losses, saying that surveys are being conducted in affected areas and farmers will be compensated. He said farmers will not only get a bonus from the Bhavantar scheme but also compensation for crop losses.
Memories of a troubled past
The Bhavantar Payment Scheme was launched on October 16, 2017, by the then Chief Minister Shivraj Singh Chouhan. Initially, the scheme covered eight crops—primarily oilseeds and pulses. In 2018, it was expanded to include a total of 13 Kharif crops. The scheme aimed to compensate farmers for losses when market prices fell below the Minimum Support Price (MSP), thereby reducing their financial risk.
The government introduced the scheme based on the belief that farmers were not receiving fair prices in mandis, faced pressure from middlemen, and were often forced to sell their produce at low rates out of compulsion. However, the implementation of the scheme revealed several irregularities.
In December 2017, for instance, three individuals in Sehora, Jabalpur, were caught using fake documents to sell a trader’s crop under a farmer’s name. Similarly, in October 2017 at the Karond mandi in Bhopal, farmers reported that traders were not making cash payments for crop sales—despite government orders allowing cash transactions up to ₹50,000. Farmers also alleged that when they insisted on cash payments, traders deducted commissions before handing over the money.
After the scheme implementation, not only did the opposition target the government, but even within the government’s own ministers and leaders became critical.There was no consensus on this scheme. Then Agriculture Minister Gaurishankar Bisen had talked about removing black gram from the scheme and purchasing it at support price when its prices fell. Energy Minister Paras Jain had complained about traders not making cash payments. The Chief Minister instructed ministers to take feedback from their respective districts and report whether the scheme should continue or needed changes.
But even after this instruction, irregularities continued. Eventually, after 2019, the scheme gradually cooled down and was finally discontinued.
Ranks First in the Country
Madhya Pradesh ranks first in the country in soybean production and cultivation, with a share of 55 to 60 percent. The state’s Malwa and Nimar regions are known for soybean cultivation. However, in recent years, farmers have suffered heavy losses due to rain, poor quality medicines, and not getting proper prices in mandis.
In 2024, 80 percent of the crop of farmers in the Malwa and Nimar regions was destroyed. Ground Report had done a detailed report on this at that time. Mohit Maran (30) cultivates soybeans on 20 acres in Lasudiya Parihar village in Sehore. Last year, he sold his total 80 quintal crop at the then MSP rate. But that year he also had to bear several losses. He had planted climate-resistant variety RVSM 1135 on one acre of his field. But this crop also got damaged. Due to applying poor quality fungicide, he had to resow some of his crop.
This is not just one or two incidents in Madhya Pradesh where soybean farmers have suffered losses for one reason or another. This year, several farmers in Rajgarh were distributed poor quality seeds, after which they had to resow their crops. But to save farmers from losses, the government was purchasing soybeans at MSP.
However, this month, SOPA Chairman Dr. Davish Jain had written a letter to Union Agriculture Minister Shivraj Singh Chauhan expressing concern about the increasing government losses from soybean purchases.
The government purchased 20 lakh tons of soybeans under PSS. But SOPA said that procurement costs have increased due to administrative expenses, logistics, and spoilage of goods. According to the association, the government has incurred a loss of approximately ₹2,000 crores. Since MSP has been increased this year, this loss could increase further.
Dr. Jain had advocated for implementing the Bhavantar scheme in his letter to the government. He wrote, “Bhavantar ensures that actual farmers can get timely compensation without the heavy costs associated with procurement, storage, and resale.”
In such a situation, when the Madhya Pradesh government is already facing debt and losses, bringing back this scheme seemed more appropriate. Farmer Mohit Moran from Sehore is happy with this government announcement, but he says the government delayed the announcement. He says many small-holding farmers have already sold their crops, while many farmers are now in doubt whether they should hold their crops or sell them. He says that when registration will start and when the crop’s price difference will come to accounts – all this would have been better if it happened a bit earlier.
Support us to keep independent environmental journalism alive in India.
Keep Reading
Highway Halt Puts Kashmir’s Fruit Economy at Risk
Microplastics Contaminating Bhopal’s Fresh Vegetables
Stay connected with Ground Report for underreported environmental stories.
Follow us onX, Instagram, and Facebook; share your thoughts at greport2018@gmail.com; subscribe to our weekly newsletter for deep dives from the margins; join our WhatsApp community for real-time updates; and catch our video reports on YouTube.
Your support amplifies voices too often overlooked, thank you for being part of the movement.
