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Bhavantar Bhugtan Yojana
A price deficit compensation scheme by the Government of Madhya Pradesh to protect farmers against distress sales below MSP.
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Highlights and Media
Key Highlights
Price Risk Hedging
Compensates the difference between the Minimum Support Price (MSP) and the market selling price.
Direct Mandi Integration
Validates sales transactions through official state mandis to prevent fraudulent claims.
Deficit Compensation Structure
How compensation is calculated based on market selling price vs MSP
Selling Price is below MSP but above Model Price
MSP minus Selling Price PaidFarmer receives the exact difference between the official MSP and their actual mandi selling price.
Selling Price is below both MSP and Model Price
MSP minus Model Price PaidFarmer receives the difference between the MSP and the average model price (lower compensation).
Who is eligible
- The farmer/entity is operating in Madhya Pradesh.
Eligibility rules · v1 · effective 1 January 2020
Who is not eligible
- Bhavantar Bhugtan Yojana requires an active farming operation.
How to apply
Mandi Registration
Register on the MP e-Uparjan portal or at local agricultural mandis.
Crop Selling & Mandi Receipt
Sell crops within the designated mandi during the specified Kharif crop procurement window and acquire the receipt.
Deficit Processing & Payment
The difference between the MSP and the Model/Selling Price is calculated and credited directly to the registered bank account.
Sources
- Department of Farmer Welfare and Agriculture Development, Government of Madhya PradeshMINISTRY_PORTAL · Fetched 5 July 2026
Additional Details
Bhavantar Bhugtan Yojana is a farm price deficit payment scheme launched by the Government of Madhya Pradesh. Under this program, the state government compensates farmers for the price difference when the selling price of their agricultural produce falls below the official Minimum Support Price (MSP). Compensation is based on either the actual selling price in registered mandis or the average model price, helping hedge farming risks.