The Chief Minister Mr.Kamal Nath Cabinet has given more incentives to farmers by taking a decision to give Rs.160 per quintal more on wheat over and above the Central Government minimum support procurement price.
The last Government of Chief Minister Mr.Shivraj Singh Chouhan also paid Rs.100 per quintal more on wheat minimum support price. But his gesture created a serious difficulty for his Government.
The farmers of neighbouring states the Rajasthan, Uttar Pradesh and Maharashtra brought their wheat stock to Madhya Pradesh as in their states there was no payment of bonus. They sold it through the local farmers and bribery at the purchasing centre to get the benefit of the bonus. This created financial difficulty for the Madhya Pradesh Government.
Moreover the NABARD and the FCI, the Central Government procurement agencies objected to Bonus practice of Madhya Pradesh. The Central agencies procured the wheat first and after their full quota the State procurement started.
The farmers were not selling the wheat to central agencies as they were not paying any bonus. Ultimately the Central Government has asked the State Government to stop the bonus practice of paying bonus over the support price.
The State Government had to comply with Central directive and stopped the bonus in wheat. Now the Kamal Nath Government has again restarted the Bonus and enhanced from Rs.100 to Rs.160.
Mr.Shivraj Singh Chouhan has introduced a naval scheme of “Bhavantar”. It caught the all India attention and all the Centre and States hailed it as best way to help the farmers. In this scheme the Government pays the difference amount between the farmers price and the open market price.
In recent decision the Madhya Pradesh Government will pay Bhavantar of Rs.250 per quintal on Macca (corn) crop.The Centre has fixed support price of the wheat Rs.1840 per quintal. In Madhya Pradesh the wheat farmer will get Rs.2000/- per quintal including bonus.
The State Government has to guard against the infiltration of wheat farmers from other states of sell their wheat stock here. The Government also pay bonus to those farmers also who sell their wheat in Mandis.The farmers will not be under compulsion to sell to the Government alone. There are expectations that the farmers may get price more than the procurement price in other markets.