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Bavantar Bhuhtan Yojana | 44th Current Affairs class | IAS 2019

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What is Bhavantar Bhugtan Yojana (BBY)?

  • BBY is a “Price Deficiency Payment” (PDP) scheme, being undertaken by the government of Madhya Pradesh.
  • BBY assures that farmers at least get the MSP value for their crops.
  • 8 kharif crops namely Soybean, maize, urad, tur, moong, groundnut, til, ramtil are covered under the scheme.

What is the Structure of the scheme?

  • Under the scheme, farmers will have to first register on a portal and their sown area is then verified by government officials.
  • Subsequently, the farmer allocated a time slot to bring his produce to the mandi, where the quantity eligible for deficiency pricing is determined.
  • The quantity is determined based on the average productivity of the particular district and the cropped area of the particular farmer.
  • The farmers receive the difference between “average sale price” (market price) and “minimum support price” (MSP), directly into their bank accounts.
  • It hence provides an alternative to physical procurement of commodities at MSP, which comes with the hassles of storage, transport and marketing.

What are the problems?

  • Only those farmers registered on its portal gets benefited.
  • Financial burden will be more than 90% of the state’s total agri-budget, rendering BBY unfeasible.
  • The Haryana government too has announced a somewhat similar scheme for vegetables but it does not even cover the full cost of production.

What is Telangana’s Scheme?

  • The government of Telangana is piloting an “Input support scheme” modelled on the line of EU’s “single payment scheme”.

What is the Structure of the scheme?

  • It involves paying Rs 4,000 per acre to every farmer twice a year for the kharif and Rabi seasons.
  • The payment is mainly to cover the cost of major farm inputs such as fertilisers, seeds and pesticides.
  • It is also to relieve farmers from taking loans from moneylenders.
  • This doesn’t require the farmer to register his cultivated area and the farmer isn’t constrained by crop choice or sale timelines.
  • This model is crop-neutral, more equitable, more transparent, and gives farmers the freedom to choose.
  • The Problems – It is being linked to land ownership. Thus it automatically leaves out tenant cultivators of such input supports provided.
  • The payments are on a per-acre basis. Thus a sizeable share of the payment will go to undeserving large farmers and absentee landowners.
  • There is no provision to ensure that the financial aid is actually utilised for purchasing farm inputs.
  • Thus the programme needs modification to lend income support to those who are actually engaged in agricultural activities.

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