What is price support scheme being implemented for soybean farmers this year?

The central government will procure soybeans at the Minimum Support Price (MSP) of Rs 4,894 per quintal under the Price Support Scheme (PSS) to protect farmers from economic losses and ensure fair compensation.

Union Agriculture Minister Shivraj Singh Chouhan revealed that the central government is ready to implement the PSS for soybean procurement in Madhya Pradesh if the state government requests it. The scheme is approved for Maharashtra and Karnataka.

"If the Madhya Pradesh government demands, we would allow the PSS scheme here too. We're in touch with the Madhya Pradesh government, and there's a delay in the Soyabean crop sale," Chouhan stated during a Bhopal press conference.

This announcement comes at a crucial time for Madhya Pradesh, which recently claimed the top position in soybean production with 5.47 million tonnes, contributing 41.92% to the country's total output. The state has seen a 1.7% increase in soybean cultivation area in 2023-24 compared to last year, resulting in higher production.

What is the Price Support Scheme?

The Price Support Scheme (PSS) is a government initiative to safeguard farmers against agricultural market price volatility. Under this scheme, the government procures crops at the Minimum Support Price when market prices fall below that level.

The PSS applies to notified pulses, oilseeds, and copra. Through the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), which serves as the central nodal agency, the Department of Agriculture & Cooperation implements it.

The PSS’s main objective is to ensure a stable and profitable price environment for farmers, encouraging higher investment and production in agriculture. This policy aims to balance the interests of producers and consumers while supporting the economy’s needs.

What are the benefits?

1. Protection against price fluctuations: When commodity prices fall below the MSP, state and central procurement agencies buy directly from farmers at the guaranteed support price.

2. Economic security for farmers: The scheme shields farmers from potential losses due to market price volatility.

3. Incentive for increased production: Price supports can lead to larger production volumes, but may result in overproduction at the support price.

Application process and requirements

To benefit from the Price Support Scheme, farmers must follow these steps:

1. Download the application form from the official website.

2. Fill in the required details accurately and completely.

3. Attach supporting documents.

4. Submit the application at the designated government office.

Required documents may include:

• Identification proof

• Land documents

• Bank account details

• Agricultural documents

• Income certificate

• Photographs.

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