Bhavantar Bhugtan Yojana, Objectives, Features, Eligibility

The Bhavantar Bhugtan Yojana is a farmer-focused scheme aimed at protecting farmers from losses when the market price of their crops falls below the Minimum Support Price (MSP). It provides financial support to cover part of the price difference, helping farmers maintain a more stable income. The scheme is mainly designed to reduce the impact of market price fluctuations and provide greater financial security to farmers. 

Bhavantar Bhugtan Yojana Objectives

Bhavantar Bhugtan Yojana Objectives focus on protecting farmers from price fluctuations by providing compensation when market prices fall below the assured level, thereby supporting farm incomes and reducing financial risks.

• Protect farmers from price crashes: The Bhavantar Bhugtan Yojana aims to protect farmers when the market price of their produce falls below the government-fixed Minimum Support Price (MSP).
• Provide price-deficit compensation: Instead of purchasing the crop directly, the government provides a deficiency payment to cover the eligible gap between the assured price and the price received by the farmer.
• Reduce income losses: The scheme helps farmers manage price risk and market volatility, especially for crops whose market prices can fluctuate sharply during the harvest season.
• Support farmers in Madhya Pradesh: Madhya Pradesh was the first state to introduce the Bhavantar Bhugtan Yojana on a pilot basis in 2017, initially covering eight commodities, including soybean, groundnut, sesame, maize, moong, urad, tur and ramtil.
• Improve farmers’ access to markets: The scheme allows farmers to sell their produce in notified markets rather than depending only on government procurement for price support.
  

Bhavantar Bhugtan Yojana Features and Benefits

Bhavantar Bhugtan Yojana Features and Benefits highlight the scheme’s role in protecting farmers from price fluctuations, ensuring income support, and reducing the financial risks associated with falling market prices.

• Price Deficiency Payment Scheme: The Bhavantar Bhugtan Yojana is based on compensating farmers for the difference between the applicable MSP or government-set price and the price actually received in the market.
• No physical procurement: Unlike conventional procurement-based support, the government does not need to physically purchase, store, or transport the entire crop under the scheme.
• Direct Benefit Transfer (DBT): Eligible compensation is transferred directly into the farmer’s bank account, making the payment process more transparent and reducing the possibility of leakages.
• Protection from market volatility: The scheme provides a degree of income protection when market prices fall below the assured level, helping farmers cope with sudden price declines.
• Greater freedom to sell: Farmers can sell their produce to buyers in government-notified mandis, giving them greater flexibility while retaining price protection under the scheme.
• Lower government expenditure: Since the government does not have to procure and maintain physical stocks, the scheme can reduce the costs related to procurement, storage, and transportation.
• Support for selected crops: The scheme has mainly focused on selected oilseeds, pulses, and other notified crops, with the exact coverage depending on the government’s notification.
  

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How Does Bhavantar Bhugtan Yojana Work?

• Farmer registration: Farmers first register themselves and provide details such as their crop and cultivated area within the prescribed period before selling their produce.
• Sale through notified mandis: Registered farmers are required to sell their eligible produce through government-notified agricultural markets, where the actual selling price is recorded.
• Calculation of market price: A Modal Price is determined using the average market price of the commodity across relevant markets. It acts as an indicator of the prevailing market price.
• Comparison with MSP: The farmer’s actual selling price is compared with the applicable MSP and Modal Price to determine whether a price deficiency has occurred.
• Payment of the eligible difference: If the selling price is below the applicable support level, the government provides a price-deficiency payment according to the scheme’s prescribed formula.
• Payment ceiling: If the farmer sells the crop at a price lower than both the MSP and Modal Price, the compensation may be capped at the difference between the MSP and Modal Price.
• Example: If the MSP is higher than the farmer’s selling price, but the selling price is above the Modal Price, the farmer can receive the difference between the MSP and actual selling price. Where the selling price falls below the Modal Price, the eligible payment is generally limited to the prescribed MSP-Modal Price difference.

Bhavantar Bhugtan Yojana Eligibility and Application Process

• Eligible farmers: The scheme is intended for farmers growing notified crops covered under the particular implementation of the scheme. Crop coverage may vary according to government notifications.
• Prior registration: Farmers need to register within the specified registration period and provide details of their crop and cultivated area to become eligible for the benefit.
• Sale at notified mandis: To receive compensation, the registered farmer must sell the eligible produce through the specified government-notified mandi system, where the transaction can be verified.
• Application through designated platforms: Registration can be carried out through designated government platforms such as the MP Mandi Board portal, MP Online, or Common Service Centres (CSCs), as prescribed by the authorities.
• Bank account details: Farmers must provide valid bank account details so that the eligible deficiency payment can be transferred through DBT.
• Verification and payment: After registration and sale, the relevant crop and transaction details are verified. The eligible price-deficiency amount is then transferred directly to the farmer’s bank account.
• Important condition: Registration alone does not guarantee payment. Farmers must meet the scheme’s crop, registration, market-sale, and other prescribed conditions applicable during the relevant season.