MP joins price support scheme for oil seeds, Karnataka may follow suit

Up to 25% of the anticipated production of notified oilseeds crops is covered under the scheme. States are free to provide any additional coverage at their own cost. Nishan Warwade, Secretary, Department of Farmer Welfare and Agriculture Development, Madhya Pradesh, told FE that in the kharif season of 2025, an amount of Rs 1500 crore was paid to over 0.72 million farmers under Bhavantar, while during the rabi season, mustard prices were ruling significantly above the MSP.

5% “As current mandi prices of soybean are in the range over Rs 6700/quintal – Rs 6800/quintal against the MSP of Rs 5708/quintal for the 2026-27 marketing season, we may not have to carry out Bhavantar as prices are likely to rule over the MSP this season,” Warwade said. An agriculture ministry official said that the Karnataka government has also shown interest in implementing PDPS under which farmers get the benefit of MSP while physical procurement of commodities by agencies may lead to market distortion and storage losses.

The registration window for Madhya Pradesh farmers in the portal for the Bhavantar scheme is open till October 24, 2026, the eligibile sale period in the notified mandis to get the benefit of Bhavantar is during October 22, 2026 and January 15, 2027. The state government has allotted Rs 1,500 crore as a one-year credit limit for the Madhya Pradesh Mandi Board. The modal rate for the first 14 days of the season starting Thursday will be fixed on the weighted average of notified mandis across Madhya Pradesh.

Subsequently, the modal rate would be fixed on a daily basis on the weighted average of the preceding 14 days and displayed on the e-mandi portal. An agriculture ministry official said that the Karnataka government has also shown interest in implementing PDPS under which farmers get the benefit of MSP while physical procurement of commodities by agencies may lead to market distortion and storage losses.

“By combining market-driven pricing with direct deficit transfers capped to prevent market gaming, PDPS converts market volatility from a threat into a manageable, insured risk,” according to an official note. To boost farmers' remuneration without physical procurement of commodities, the agriculture ministry has allowed states to pay the price differential between the Market Intervention Programme (MIS) and the actual selling price up to a 25% deficit with losses shared equally between the Centre and states.

Madhya Pradesh had earlier launched the Bhavantar Bhugtan Yojana in 2017 for eight crops including soybean, groundnut and pulses including pigeon peas, which the government later decided to discontinue. Experts say that the earlier Bhavantar scheme failed due to market manipulation by traders, delayed payments to farmers, and limited selling periods which led to a sudden surge in supplies.