Bhavantar Scheme Extended to Mustard in Madhya Pradesh
Why in the news
The Union government accepted a request from Madhya Pradesh to cover mustard under its Bhavantar Bhugtan Yojana, so that farmers are shielded from falling market prices.
Key facts
- Scheme: Bhavantar Bhugtan Yojana (BBY).
- Type: Price Deficiency Payment Scheme (PDPS).
- New coverage: mustard procurement in Madhya Pradesh.
- Mechanism: farmers sell in the open market, and the government pays them the difference between MSP and the market price directly.
Timeline
| Year | Event |
|---|---|
| 2017 | Madhya Pradesh first implemented BBY for soybean, when Shivraj Singh Chouhan was Chief Minister |
| 2025 | Scheme revived with revised norms under the present state government |
| 2026 | Centre approved extension to mustard |
About the scheme
- It compensates growers when prices drop below the government benchmark, the MSP.
- Payment is a direct pay-out of the price gap rather than government buying of the crop.
Exam angle
- Scheme type: Price Deficiency Payment Scheme.
- First crop covered: soybean (2017); new crop: mustard.
- Related terms: MSP, open market sale, direct payment.