Union Government Approves Extension of Bhavantar Scheme to Mustard in Madhya Pradesh

The Central Government has approved a proposal from the Madhya Pradesh government to extend the Bhavantar Bhugtan Yojana (BBY) to mustard procurement, as per media reports. The scheme, which provides compensation when market prices fall below benchmark levels, had earlier been used for soybean in 2025. 

The decision was taken during a meeting in New Delhi between Madhya Pradesh Chief Minister Mohan Yadav and Union Agriculture Minister Shivraj Singh Chouhan. 

Mustard Prices Below MSP 

The approval comes as arrivals of the 2026 mustard crop have begun in several mandis across the state. Market prices for the new crop are currently below the Minimum Support Price (MSP) of ₹5,950 per quintal. 

Madhya Pradesh is among the major mustard-producing states in India, after Rajasthan and Uttar Pradesh. Lower mandi prices during the early arrival phase prompted the state government to seek the extension of the deficiency payment scheme to the oilseed crop. 

Mechanism of the Bhavantar Scheme 

The Bhavantar Bhugtan Yojana allows farmers to sell produce in the open market while receiving compensation if the market price is lower than the government’s benchmark level. 

Instead of procuring the crop directly, the government transfers the difference between the benchmark price and the market price to farmers. The approach is intended to reduce the risk of price fluctuations while keeping normal market trading in place. 

Earlier Use of the Scheme 

Madhya Pradesh had earlier implemented the price deficiency payment model in 2017 for soybean during the previous tenure of Shivraj Singh Chouhan as Chief Minister. The programme was relaunched in 2025 by the Mohan Yadav government with revised operational guidelines. 

With mustard added to the list, the state is now applying the mechanism to 2 major crops. 

Other Decisions at the Review Meeting 

During the meeting, the Union Agriculture Minister also approved a proposal to procure 100% of tur (pigeon pea) produced by farmers in Madhya Pradesh. Officials said the step is for preventing distress sales during periods of excess supply. 

The review also covered pending payments linked to soybean and mustard procurement, as well as progress under programmes such as Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Awas Yojana – Gramin and Pradhan Mantri Gram Sadak Yojana. 

Read More: PMFME Scheme Formalises 59,202 Micro Food Units and Mobilises ₹17,015.8 Crore Investment Nationwide! 

Conclusion 

The extension of the Bhavantar Bhugtan Yojana to mustard comes as the new crop begins arriving in markets with prices below the MSP. The scheme will allow farmers to sell their produce in the open market while receiving compensation for the price gap. 

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