MP Chief Minister Agricultural Productivity Scheme – Subsidy on MSP for Farmers

Dated: February 15, 2018 | Updated On: February 15, 2018 | By: Karan Chhabra | |

Madhya Pradesh govt. is going to start Chief Minister Agricultural Productivity Scheme for farmers in the state. Subsequently, the state govt. will provide incentives on certain chosen crops as minimum support price of crops. Accordingly, govt. will add this amount of incentives to the subsidy amount given by the central govt.

MP govt. is going to take various measures to increase the price of produce of farmers in the state. Accordingly, Madhya Pradesh govt. has announced this scheme on 12 February 2018. Under this scheme, govt. will provide additional incentives on 2 major crops – wheat and paddy.

Subsequently, MP govt. will allocate Rs. 1200 crore for the successful implementation of Chief Minister Agricultural Productivity Scheme. Farmers can use licensed warehouse for storage of their inventories. Subsequently, this scheme will also help farmers to properly store their agricultural produce and sell them at appropriate prices.

MP Chief Minister Agricultural Productivity Scheme – Details

The important features and highlights of this Agricultural Productivity Scheme are as follows:-

  • This scheme will provide incentives on 2 chosen crops on their MSP.
  • Accordingly, the state govt. will add this incentive amount to the existing amount of subsidy provided by the central govt.
  • Subsequently, this scheme will ensure welfare of farmers and some other measures for the betterment of farmers across the state.
  • Henceforth, govt. has allotted Rs. 1200 crore for this CM Agricultural Productivity Scheme.
  • Motive – The primary objective of this scheme is to ensure that farmers get fair prices for their agricultural produce at a certain period of time. In addition to this, govt. will provide additional incentives to farmers.
  • Incentives – Central govt. has decided to provide Rs. 1735 / quintal for wheat produce. Now, the state govt. will provide additional Rs. 200 / quintal for the same produce. This means that the farmers will get Rs. 2000 / quintal for wheat produce under Chief Minister Agricultural Productivity Scheme.
  • Crops – Wheat and Paddy are 2 major crops chosen under this scheme. These two crops are the major food crops, so farmers will get incentives on these 2 agricultural produce.

This scheme of the state govt. aims at “Doubling the Farmers Income by 2022”.

E-Procurement Process

The e-procurement data of wheat and paddy crops of the FY 2017 is as follows:-

  1. E-procurement (Wheat) – During Rabi Season of 2016-17, govt. has made an e-procurement of 67.25 lakh MT (metric tonnes). Accordingly, MP govt. has paid Rs. 1,340 crore to more than 7 lakh farmers as MSP.
  2. E-procurement (Paddy) – During Kharif Season of 2017, MP govt. has made an e-procurement of 16.59 lakh MT of paddy. For this, the state govt. has spend Rs. 330 crore to around 3 lakh farmers as MSP.

Additional Benefits

MP govt. flagship scheme – Bhavantar Bhugtan Yojana will now include mustard crops, gram, masoor and onion. Previously, farmers does not have any provisions for storage of their agricultural produce. But now farmers can use licensed warehouse for proper storage of their inventories. This scheme will ensure proper selling of 2 crops rather than selling them at depressing price which will reduce wastage of crops.

Madhya Pradesh becomes the first state in the entire country which provides incentives on wheat. Moreover, these incentives can disrupt the market price but the state govt. has successfully implemented this scheme.

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