Chief Minister Agriculture Productivity Scheme: Incentive to Farmers In MP

Chief Minister Agriculture Productivity Scheme: Incentive to Farmers In MP (MSP) Subsidy Scheme

The state of Madhya Pradesh has started a new scheme for the farmers in the state. Under this new scheme namely Chief Minister Agriculture Productivity Scheme farmers will get incentives on chosen crops as minimum support price. This incentive amount will be added to the subsidy given by the central government of India.

Chief Minister Agriculture Productivity Scheme MP Incentive to Farmers

Launch Details

On Monday, 12th February 2018, Chief Minister of Madhya Pradesh, Shivraj Singh Chauhan has announced about the scheme and some measures to encourage the farmers’ price for their produce in the state.

Key features

  • Aim: The main objective of the scheme is to encourage farmers of the state to get fair price for their agricultural produce at a given period of time. The measures taken under this scheme are to provide additional incentive to MSP.
  • Incentives: Central government of India has announced to provide Rs. 1, 735/- per quintal for the wheat produce. Along with that amount state government of MP has declared that they will provide additional Rs. 200/- per quintal for the same produce. It means that the farmers will get approximately Rs. 2000/- per quintal as incentives from the government.
  • Crops: Wheat and Paddy are the two major crops that are being chosen under this scheme. As these two produce are the main food crops, farmers will get incentives on MSP on these two agricultural produce.
  • E-procurement (Wheat): During Rabi Season in the year 2016-17, the e-procurement of Wheat was 67.25 Lac metric tonnes. The government has paid Rs. 1, 340 Cr to more than 7 Lac farmers as MSP.
  • E-procurement (Paddy): On the other during Kharif season in the year 2017, the state has e-procured 16.59 Lac metric tonnes of Paddy. The government has paid Rs. 330 Cr to nearly 3 Lac farmers as MSP in that year.
  • Budget: The state government will allocate Rs. 1, 200 Cr in this scheme. This will include faremrs’ welfare and other measures that are taken to ensure betterment of the farmers across the state.

Other Benefits

Under Bhavantar Bhugtan Yojana in 2017-18 and 2018, few more products such as mustard crops, gram and masoor will be included. Alongside Onion will also be added in the year 2018.

Farmers now can use licensed warehouse to store their inventories. In earlier times, they didn’t have such provisions. This will help them to store produce and sell them in future instead of selling them at depressing price to reduce wastage of crops.

MP is the first state in India that provides such incentives on wheat. Though the central government has stated that this incentive can disrupt the market price, but the scheme is successfully implemented in the state of Madhya Pradesh.


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