The price trap: Bhavantar, MP’s high-wire act

From promised MSPs to ‘manipulated’ markets, the state’s soybean farmers walk a tightrope of risk, loss, and hope. Sanjeeb Mukherjee writes

- Sanjeeb Mukherjee writes

Soybean farmersin Madhya Pradesh are increasingly anxious.

Market rates for the main Kharif crop have dropped by almost %400-500 per quintal over the past 10-15 days.

This fall, coming just weeks ahead ofthe new harvest season, is partly blamed on rising imports. But a large section of farmers suspect the decline is linked tothe relaunch ofthe controversial Bhavantar Bhugtan Yojana (BBY), or Price Deficiency Payment scheme.

Although the scheme was announced last week for soybeans, farmers allege that traders may have had a whiff of the move.

State Chief Minister (CM) Mohan Yadav said the Centre has fixed the minimum support price (MSP) for soybeans for the 2025-26 season at %5,328 per quintal. He added that if market prices fall below this level, the state government is committed tocompensating farmerssothey receive the full MSP benefit.

The government has not yet announced formal registration dates, but sources suggest it will likely begin on October 10, with purchasesstartingin November.

Under BBY, if the selling price of an average-quality soybean in the market is below the MSP but above the state’s declared average model price, farmers will be compensated only for the difference between the MSP and the actual selling price. However, if the market price falls below the average model price, compensation will cover the gap between the MSP and the average model price.