iGrain India - The Bhavantar Bhugtan Yojana (Price Deficit Payment Scheme) is set to be implemented in Adilabad district of Telangana starting next month, initially on a pilot basis for cotton producers. This initiative by the central government aims to support farmers by compensating them for the difference between the Minimum Support Price (MSP) and the prevailing market price of cotton. The scheme is intended to ensure that farmers are not forced to sell their produce at a loss, thereby improving their financial security.
Key Features and Implementation:
- The scheme will be first tested in Adilabad district, which has been chosen due to its reliable online records of farmers, crucial for effective implementation.
- The Central Government will work with Telangana State Government and other stakeholders, including industry representatives, to roll out the plan.
- The main reason for choosing Adilabad district is its better online documentation and data management of farmers. This makes it easier to identify eligible farmers and ensure smooth delivery of benefits.
- Telangana is the third-largest cotton producer in India, so the success of the scheme here could potentially be replicated in other regions.
- The Cotton Corporation of India (CCI) has already purchased a large quantity of cotton from farmers at MSP during the peak harvest period (October to mid-December), which helps stabilize prices and provides a base for calculating the Bhavantar Bhugtan.
- The government aims to provide timely compensation to farmers for any price gaps post the MSP purchases.
- Although cotton farmers in Telangana have already sold much of their harvest, there could be challenges in reaching out to farmers who may not have participated in MSP purchases or who missed the official cotton buying window.
- There could be logistical issues in ensuring that the scheme reaches the right set of farmers, especially in remote or less-documented areas.
- This scheme aligns with the pre-election promise made by the government to implement similar support mechanisms for cotton and soybean producers, particularly in regions like Maharashtra.
- The NITI Aayog-led committee, formed to oversee the scheme, has already held an important meeting to discuss the logistics and roll-out process.