Madhya Pradesh support for below-MSP sales triggers doubt over efficacy

Just before the announcement of the assembly election schedule, the Madhya Pradesh government had announced up to `500 per quintal reimbursement to soyabean and maize farmers under the Bhavantar (price differential) scheme if the mandi prices fall below their respective MSPs. Average mandi price of soyabean in Madhya Pradesh was down by nearly `500 per quintal from the MSP level during October 1-17, which creates doubt over the efficacy of such a system to guarantee the minimum price for the farmers. The average mandi price of soybean was Rs 2,920/quintal, against MSP of Rs 3,399 while maize was Rs 1,219/quintal compared with MSP of `1,700 across the state during October 1-17. The maize price in Davangere, Karnataka, a major producing and trading centre in the country, was Rs 1,275/quintal during October 1-17. The state may announce a flat payment for all the farmers so that no one complains against any discrimination made by the government because of the assembly election next month.