Bhavantar Scheme

• 22 Oct 2025

The ‘Bhavantar’ Scheme in Madhya Pradesh has witnessed a threefold surge in farmer registrations, reaching 9.36 lakh, reflecting strong participation and trust in the government’s price protection initiative. 

Key Points 

• About: The Bhavantar Scheme is a price deficit payment scheme aimed at bridging the gap between market prices and the Minimum Support Price (MSP) to prevent financial losses for farmers. 
  • The scheme specifically targets soybean and millet farmers in Madhya Pradesh, often referred to as the country’s soybean bowl. 
• Mechanism: Farmers must register their details and crop area with state authorities before sowing and sell their produce in government-notified mandis.  
  • The government fixes a Minimum Support Price (MSP)/Model Price and calculates a Model Rate based on average market prices, recording the actual sale price received by the farmer.  
  • The Direct Benefit Transfer (DBT) is the difference between the higher of MSP/Model Price or Model Rate and the actual sale price, which is directly credited to the farmer's bank account.  
• Advantages: 
  • Price Risk Mitigation: Protects farmers from market volatility and ensures a fair price. 
  • Reduces Fiscal Burden: Avoids costs of procurement, storage, and transport. 
  • Promotes Market Freedom: Farmers can sell to any buyer in notified mandis. 
  • Transparency: DBT ensures direct, timely payments, reducing corruption. 
• Challenges:  
  • Implementation Hurdles: Delays in registration, payments, and technical glitches. 
  • Data Accuracy: Model Rate may not reflect true market prices, causing inadequate compensation. 
  • Trader Collusion: Risk of mandi traders keeping prices low. 
  • Limited Crop Coverage: Scheme often covers only specific oilseeds and pulses.

Soybean (Glycine max)

• About: Soybean is a major crop grown for oil and protein, with a world production of about 176.6 million tons over 75.5 million hectares. 
• Growing Conditions: Mainly grown under rainfed conditions, though supplemental irrigation is increasingly used. 
  • Adapted to tropical, subtropical, and temperate climates. Growth slows above 35°C and below 18°C. 
• Top Producers: The major producing states in India are Madhya Pradesh, Maharashtra, and Rajasthan. Brazil, the United States, and Argentina are the top global producers of soybeans.