SOPA urges Govt to implement Bhavantar Payment Scheme
2 min read
Indore(Team Newsbuddy): The Soybean Processors Association of India (SOPA) has urged Union Agriculture Minister Shivraj Singh Chouhan to replace the existing Price Support Scheme (PSS) with the Bhavantar Payment Scheme. SOPA argues that this move would not only provide farmers with direct and immediate relief but also cut the government’s financial burden by almost half.
In a letter to the Minister, SOPA Chairman Dr. Davish Jain highlighted that during the marketing year 2024–25 (October 2024–September 2025), soybean mandi prices consistently remained below the Minimum Support Price (MSP) of ₹4,892 per quintal. The main reasons were the reduction in import duties and the competition from Distillers Dried Grains with Solubles (DDGS), which led to a decline in both soybean oil and meal prices.
To support farmers, the government procured nearly 2 million tonnes of soybeans through NAFED and NCCF, but this came at a huge cost due to administrative expenses, storage, wastage, and commissions. Later, the stock had to be auctioned at a discount of ₹10,000 per tonne, causing an estimated loss of ₹2,000 crore to the exchequer.
Now, with the MSP for 2025–26 raised to ₹5,328 per quintal, market conditions remain unchanged. SOPA expressed concern that if the current situation continues, the government may have to procure nearly double the quantity of soybeans compared to last year, potentially pushing losses beyond ₹5,000 crore.
In this context, SOPA recommended that under the Bhavantar Payment Scheme, the difference between the market price and MSP should be transferred directly to farmers’ bank accounts. This, Dr. Jain emphasized, would ensure immediate relief to farmers, reduce government expenditure by half, and eliminate unnecessary logistic and storage costs.
He further stressed that the scheme must be designed in a way that ensures benefits reach only genuine farmers, leaving no room for malpractice or misuse.
