iGrain India - Announcement of Rs 5000 Per Hectare Assistance to Soybean and Cotton Farmers
New Delhi: The Union Agriculture Minister has announced that soybean and cotton producers will receive an additional Rs 5000 per hectare, which will be directly credited to their bank accounts. The disbursement process has already commenced.
In addition, the government has raised the customs duty on palm oil imports from Malaysia and Indonesia to 27.5%. This move aims to support indigenous oil mills and ensure that domestic farmers receive a fair price for their soybean crops. To further support farmers, the government has also increased the approved moisture content level in soybean from 12% to 15%.
These measures are expected to provide significant relief to soybean and cotton producers across the country.
The Agriculture Minister also highlighted the Bhavantar Bhugtan Yojana, a government program that compensates farmers for price differences.
The government has set the minimum support price (MSP) for soybean at Rs 4892 per quintal this year. Under the Bhavantar Bhugtan Yojana, if farmers sell their produce for a price lower than the MSP in the open market, the government will compensate them for the difference.
The Bhavantar Bhugtan Yojana is part of a broader set of government initiatives. The approach may vary, where the government either directly purchases produce from farmers at MSP and deposits the payment in their accounts or compensates them through the price difference method.
Another scheme, the IPAR program, sets model prices for agricultural products such as potatoes, onions, and tomatoes, guaranteeing a 50% profit margin on production costs. This initiative helps safeguard farmers from potential losses when market prices fall.