Madhya Pradesh Chief Minister Mohan Yadav announced on Friday that the state government will implement the Bhavantar Yojana for soybean crops this year. Under this scheme, farmers will receive payment for the “differential” amount between the market price and the minimum support price (MSP).
Yadav emphasized the government’s commitment to ensuring that farmers receive a fair price for their soybean produce. He stated that, based on feedback from farmers’ unions, the state has decided to extend the Bhavantar Yojana benefits to soybean cultivators this year. Farmers will continue to sell soybeans in the market as usual; if the selling price falls below the MSP, the government will provide compensation under the Bhavantar Yojana.
For the 2025-26 season, the MSP for soybeans is set at ₹5,328 per quintal. However, during the period from September 1-25, farmers in Madhya Pradesh sold soybeans at an average price of ₹4,121 per quintal, while the all-India average was ₹4,141 per quintal. Data from Friday indicated that the mandi (agriculture market yard) price had dropped to ₹3,837 per quintal, which is lower than this month’s average. Fresh soybean arrivals in mandis across the state on Friday totaled 9,080 tonnes.
Kedar Sirohi, a former member of the State’s Agricultural Advisory Council, expressed concerns about the announcement of the Bhavantar Yojana, recalling negative experiences from 2017. He called for soybeans to be purchased at the MSP as was previously practiced and pointed out flaws in how the “differential” price is calculated.
Sirohi argued, “The scheme promises to pay farmers the difference between the market price and the MSP. However, the differential is based on a monthly modal price, which undermines the scheme’s promise. The data and calculations used for determining this differential price have not been made public.” He further noted that the current model may benefit soybean processing plants and traders more than farmers.
He reminded the government of the challenges farmers faced in 2017, when a limited implementation timeframe led to increased arrivals and a subsequent market price drop of ₹800-1,200 per quintal (30-35%), despite stable international prices. Farmers experienced delays of 1-1.5 months before receiving the differential payments, which were also lower than the true difference from the MSP.
Sirohi suggested that before the scheme is implemented, the government should gather online feedback from farmers on their preferences for selling their produce, whether through the Bhavantar Yojana or directly at the MSP. He stressed that if farmers are opposed, alternatives should be arranged to ensure purchases at the MSP.
The report was published on September 26, 2025.
