In a significant move aimed at strengthening farmer welfare and ensuring fair prices for agricultural produce, Madhya Pradesh chief minister Mohan Yadav on Thursday transferred ₹233 crore directly into the bank accounts of 1.33 lakh farmers across the state under the Bhavantar (Price Difference) Scheme for the soybean crop. The announcement was made during a state-level event, where Yadav reaffirmed his government’s commitment to fulfilling promises made to the farming community.

Speaking at the event, Yadav said that the transfer marks the government’s determination to deliver timely financial relief to farmers struggling with fluctuating market prices. “An amount of ₹233 crore has been transferred to the accounts of 1.33 lakh farmers under the Soybean Price Difference Scheme. This is proof that we have delivered what we promised. Madhya Pradesh is the first state in the country to implement such a scheme to ensure farmers receive fair returns on their produce,” he said.

The Bhavantar Yojana, introduced to safeguard farmers from the volatility of market prices, aims to bridge the gap between the Minimum Support Price (MSP) and the average market price (model price) of crops. Under this initiative, the government compensates farmers for the difference between the MSP and the model price during a given procurement period. For soybean, the MSP this year was fixed at ₹5,300 per quintal, while the model price was estimated to be ₹4,000 per quintal, resulting in a gap of ₹1,300 per quintal — a difference now being covered by the government’s payment.

“The state government has fulfilled its promise to farmers within 15 days of launching the scheme,” Yadav said. “Over nine lakh farmers in Madhya Pradesh have registered under the Bhavantar Yojana for soybean. Today, funds have been transferred to the first batch of 1.33 lakh farmers, ensuring timely assistance to those most affected by lower market prices.”

What the Scheme Means for Farmers

The Bhavantar Yojana has long been seen as a pioneering policy initiative by Madhya Pradesh to protect farmers against price crashes in the open market. Under the traditional MSP system, the government buys select crops at a guaranteed price; however, in practice, many farmers end up selling their produce below the MSP due to inadequate procurement infrastructure or delays in government purchases.

The Bhavantar model aims to fix this gap by ensuring that even if a farmer sells produce in the open market at a lower price, they are compensated for the difference between the MSP and the average market rate. The direct transfer of the price difference into farmers’ accounts is intended to promote transparency and avoid the delays and corruption often associated with middlemen.

According to officials, the scheme currently covers soybean, one of Madhya Pradesh’s most widely grown crops. With 66 lakh hectares under soybean cultivation this season, the crop remains central to the state’s rural economy, particularly in regions like Malwa, Nimar, and parts of Bundelkhand.

The government has opened registrations for farmers wishing to enroll under the Bhavantar Yojana for soybean sales until January 15, 2026, ensuring that more farmers can avail themselves of the benefits as the procurement season progresses.

Farmers’ Reactions and Concerns

While many farmers welcomed the direct benefit transfer as a positive step, some expressed dissatisfaction with the government’s use of a “model price” instead of the actual market rates to calculate compensation.

Farmer leader Rahul Raj said that the model price determined by the government does not accurately reflect the real losses faced by cultivators. “About 70% of soybean farmers are selling their produce at prices between ₹2,700 and ₹3,800 per quintal,” he said. “The government should pay the actual difference based on what farmers are earning in local mandis, not on an estimated model price. The farmers are still losing money because the compensation doesn’t cover the real gap.”

Rahul Raj further emphasized that while the Bhavantar scheme provides temporary relief, structural reforms are needed to ensure stable incomes for farmers in the long term. “Many small farmers depend entirely on one crop for their livelihood. The government must improve procurement mechanisms and storage facilities so that farmers can sell their crops at the MSP instead of being forced to accept distress prices,” he added.

Other farmer representatives echoed similar concerns, noting that while Bhavantar payments are welcome, delays in registration and verification processes have often led to uneven disbursement of funds in previous years. They urged the administration to ensure quicker verification, especially in districts where the harvesting season is shorter.

Government’s Stand and Expansion Plans

According to state government officials, the Bhavantar Yojana represents a cornerstone of Madhya Pradesh’s agricultural policy and will continue to be expanded to include other major crops. “The idea is not just to provide compensation but to guarantee a fair and predictable income to farmers despite market fluctuations,” said a senior agriculture department official. “The scheme helps reduce the risk associated with open-market dependency and builds confidence among cultivators.”

Officials also highlighted that the Madhya Pradesh government is working toward integrating Bhavantar payments with the central government’s Direct Benefit Transfer (DBT) systems to make transactions more efficient and traceable. The government aims to use digital monitoring tools to track price trends across mandis, ensuring that compensation reflects the most accurate market data.

Chief minister Mohan Yadav has repeatedly emphasized the importance of timely assistance to farmers as part of his government’s larger “pro-farmer governance model.” In recent months, the state has launched multiple initiatives to strengthen the agricultural sector, including crop insurance, improved irrigation coverage, and farmer training programs on sustainable practices.

During his address at the transfer event, Yadav reaffirmed his government’s commitment to making Madhya Pradesh a “model state for agricultural reform.” “We have demonstrated that promises to farmers are not just political slogans — they are actionable commitments. Within just 15 days of launching the Bhavantar scheme, ₹233 crore has reached farmers’ accounts. This is only the beginning,” he said.

He also hinted that future installments under the scheme could be processed more frequently as verification systems improve. “Our goal is to ensure that every registered farmer receives payment without delay. No farmer should feel left behind because of administrative bottlenecks,” Yadav added.

Soybean — The Heart of MP’s Agrarian Economy

Soybean remains one of Madhya Pradesh’s flagship crops, contributing significantly to both household incomes and state revenue. The state, often called India’s “soybean bowl,” accounts for more than half of the country’s total soybean output. However, fluctuating market prices, export restrictions, and uneven rainfall patterns have caused major distress among soybean farmers over the past few years.

The Bhavantar scheme was first introduced in 2017 under the then BJP government led by Shivraj Singh Chouhan. It was revived and expanded under Mohan Yadav’s leadership as part of a broader effort to stabilize rural incomes and address farmers’ long-standing grievances over price disparities.

Agricultural experts have described the scheme as a hybrid model that combines the flexibility of market-based sales with the security of state-backed compensation. However, they caution that the scheme must be accompanied by better market access, crop diversification, and infrastructure investments to ensure lasting impact.

Conclusion

With the transfer of ₹233 crore to 1.33 lakh soybean farmers, the Mohan Yadav government has made a decisive move toward fulfilling its promise of protecting farmers from market volatility. The Bhavantar Yojana stands as a unique initiative that bridges the gap between government policy and on-ground economic realities.

Yet, the concerns raised by farmer groups about the adequacy and calculation of compensation underscore the challenges that remain in achieving true income security for cultivators. For now, the direct transfer marks a crucial step in restoring confidence among Madhya Pradesh’s farmers — a message Yadav hopes to carry forward as his government continues to roll out its agricultural reform agenda.