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LATEST NEWS UPDATES | Bhavantar Yojna: MP farmers refuse to sign up for 2nd round -Banjot Kaur

Bhavantar Yojna: MP farmers refuse to sign up for 2nd round -Banjot Kaur

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published Published on Mar 19, 2018   modified Modified on Mar 19, 2018
-Down to Earth

Most of the over 200 farmers Down To Earth talked to in 6 villages of Hoshangabad and Sehore districts said they would not register for the Bhavantar Bhugtan Yojna for the rabi season

When Madhya Pradesh Chief Minister Shivraj Singh Chouhan announced Bhavantar Bhugtan Yojana (BBY) in August 2017 to compensate farmers for the losses they would suffer by selling their crops below the minimum support price (MSP) in the state’s 257 mandis, the farmers welcomed the scheme with open arms. About 2 million of Madhya Pradesh’s 9.8 million farmers registered for BBY between September 11, 2017, and November 25,2017, the government-designated registration window for seven major kharif crops—soyabean, urad (black gram), maize, moong (green gram), til (sesame), ramtil (niger seed) and groundnut.

But their enthusiasm is on the wane now. Most of the over 200 farmers Down To Earth (DTE) talked to in six villages of Hoshangabad and Sehore districts, the maximum soyabean and urad-producing districts of the state, said they would not register for the scheme for the rabi season. Why?

The scheme looks impressive on the face of it, but the fine print paints a different picture, say farmers, because the government has brought in another variable—a modal rate—for five of the seven crops (see ‘Wrong move’). The rate is decided taking into account the prices at which the crop was sold on any given day in Madhya Pradesh and in mandis of two other top states in terms of the volume of that crop produced. For example, if soyabean was sold at Rs X in Madhya Pradesh and Rs Y and Rs Z respectively in Maharashtra and Rajasthan, the modal rate for that day would be the average of X, Y and Z. It should be noted that the government uses modal price only when it is less than MSP. The modal prices for til and ramtil were not released because they exceeded the crops’ MSP.

The compensation to farmers is provided under two arrangements: if the crop was sold at, say, trading price (A) which is less than MSP (B), then the farmer will get the difference of B and A. But if the trading price was less than the modal price (C), then the farmer will get the difference of B and C. Herein lies the source of farmers’ woes. Being unaware of the two arrangements, most farmers sold crops below the modal rate. For example, Bhagwat Singh of Hoshangabad’s Rohna village sold urad at Rs 7,000 per tonne in November when the modal rate was Rs 41,200. Similar was the case of Ram Gopal of Hamidganj in Sehore district, who sold 2.8 tonnes of soyabean in November at Rs 25,000 per tonne when the modal rate was Rs 26,400. They believed they will be compensated under BBY and get the difference of the selling rate and MSP. But they will only get the difference of MSP and modal rate, irrespective of their trading prices. Modal rate is invariably lesser than MSP.

A visit to mandis confirmed that most sales happened below the modal rates. Pankaj Chandravanshi, a trader in Rehti mandi, says the highest price at which he bought soyabean from farmers in October was Rs 24,800 per tonne when the modal price was Rs 25,800. The trend continued in November and December, he adds.

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Down to Earth, 15 March, 2018, http://www.downtoearth.org.in/news/bhavantar-yojna-mp-farmers-refuse-to-sign-up-for-2nd-round-59864


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