Current Affairs - State - Discussion

The Madhya Pradesh government launched a new scheme to hedge price risks in agriculture wherein farmers will be compensated for distress sales at prices below Union government-announced minimum support prices (MSP). The scheme, named Bhavantar Bhugtan Yojana (Price Deficit Financing Scheme), will initially extend to eight crops, mostly oilseeds and pulses, where government procurement is typically low unlike rice and wheat. Under the scheme, farmers in Madhya Pradesh will be compensated when the notified crops are sold at less than the MSP, but the payout will be capped at a modal price.