Madhya Pradesh gets Centre's nod to extend Bhavantar scheme to mustard

The Central government has cleared a Madhya Pradesh government proposal to extend the price deficiency support scheme, also called the Bhavantar Bhugtan Yojana (BBY), to mustard procurement after its use for soybean in 2025.

 

The scheme is meant to protect farmers from price volatility.

 

The decision to extend the scheme to mustard was taken at a meeting in Delhi today between Madhya Pradesh Chief Minister Mohan Yadav and Union Agriculture Minister Shivraj Singh Chouhan.

 

The Bhavantar scheme compensates farmers when market prices fall below the government’s benchmark levels, allowing them to sell produce in the open market while receiving the difference directly from the government. Extending the scheme to mustard is expected to provide relief to oilseed growers and ensure timely fulfilment of the state government’s commitments to farmers.

   

Madhya Pradesh was among the first states to experiment with the Price Deficiency Payment Scheme, called BBY, back in 2017 for soybeans during Shivraj Singh Chouhan’s tenure as Chief Minister.

 

Later, in 2025, the present Mohan Yadav government relaunched the scheme with changed norms. Thus, Madhya Pradesh is one of the few major agricultural states experimenting with the Price Deficiency Payment Scheme in two frontline crops.

 

Madhya Pradesh is one of the major mustard-producing states in India after Rajasthan and Uttar Pradesh.

 

The new mustard crop for the 2026 season has already started arriving in some markets. The mandi price of the new mustard crop in major mandis across the state is quoting at levels that are lower than the Minimum Support Price (MSP) of ₹5,950 per quintal.

 

According to an official statement, during the meeting, Chouhan instructed officials to ensure faster disbursement of payments so that farmers receive compensation without delays.

 

He also approved a proposal to ensure 100 per cent procurement of tur (pigeon pea) from farmers in the state. Officials said the decision would provide income stability to tur growers by eliminating the risk of distress sales during periods of excess supply.

 

The review meeting also covered a range of agriculture and rural development issues affecting the state. Discussions were held on pending payments related to mustard and soybean procurement, additional targets for moong and urad under the pulses mission, and implementation of key central schemes.

 

Among the programmes reviewed were Pradhan Mantri Fasal Bima Yojana, the soil health and fertility programme, wage and material payments under the Mahatma Gandhi National Rural Employment Guarantee Act, rural housing under Pradhan Mantri Awas Yojana–Gramin, and rural road construction under Pradhan Mantri Gram Sadak Yojana.

 

Chouhan directed officials to dispose of all pending cases related to Madhya Pradesh on priority to ensure that farmers, labourers and rural households receive benefits without delay.