MP soyabean scheme may hurt Maharashtra farmers

A recent scheme by the Madhya Pradesh government to help its soyabean farmers is likely to have an adverse impact on farmers of other soya-cultivating states like Maharashtra and Rajasthan.

The MP government has promised its farmers to bear the difference between average market price and minimum support price (MSP) under its Bhavantar Bhugtan Yojana (Price Deficit Financing Scheme). This is likely to drive soyabean prices below the MSP of Rs 3,050 per quintal.

If prices in MP fall below MSP, it will naturally lead to a fall in prices in Rajasthan and Maharashtra. This is worrying farmers in Maharashtra and Rajasthan as they may have to sell their produce at rates much lower than the MSP without enjoying the cushion.