Rs 2398 Crore Subsidy Transferred to Soybean and Cotton Farmers

Key Highlights

• Rs 2,398 crore subsidy was transferred to 49 lakh farmers.
• Rs 5,000 per hectare for soybean and cotton crops.
• The first phase of the Kharif 2023 scheme was completed.
• 96 lakh farmers to benefit in total.
• Market prices for soybeans remain below MSP.

In a major relief for farmers in Maharashtra, the state government has started disbursing a subsidy of Rs 5,000 per hectare to support soybean and cotton farmers affected by rain damage during the 2023 Kharif season. This scheme aims to benefit 96 lakh farmers across the state, and the first phase has already been completed with Rs 2,398.93 crore transferred directly to the bank accounts of over 49 lakh registered farmers.

Also Read: Soybean MSP Purchase Dates Announced: Registration, Rate & Process

First Phase Completed, More Benefits on the Way

In the first phase, over 49.5 lakh farmers received subsidies through the Direct Benefit Transfer (DBT) system. The remaining farmers will get subsidies in the next phase, after completing Aadhar verification and other processes. Agriculture Minister Dhananjay Mude confirmed that all registered farmers cultivating soybeans and cotton will receive the benefit soon.

Why the Subsidy is Being Given

Last year, heavy rains caused significant losses to soybean and cotton crops in Maharashtra. The state government responded by announcing a subsidy of Rs 5,000 per hectare for affected farmers. This financial support is aimed at helping the farmers recover from their losses and stabilize their incomes. The government has now fulfilled this promise by giving a much-needed boost to the farming community.

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Subsidy Details: What Farmers Will Receive

Farmers who grow soybeans and cotton are eligible for a subsidy of Rs 5,000 per hectare. Farmers can receive this subsidy for up to two hectares of land, meaning they can get a maximum of Rs 10,000 under the scheme. This phased distribution ensures that all 96 lakh farmers in the state will eventually receive their share.

Soybean Purchase at MSP to Provide Additional Relief

Prime Minister Narendra Modi, during a recent tour of Maharashtra, announced that soybeans and cotton would be purchased at the Minimum Support Price (MSP) this season. This has provided additional assurance to farmers that they will receive fair prices for their crops. The MSP for soybeans in the 2024-25 season is Rs 4,892 per quintal, a Rs 292 increase compared to the previous year.

Current Soybean Market Prices

Despite the increased MSP, market prices for soybeans remain below this benchmark in many areas of Maharashtra. For instance, the average market price of soybeans currently stands at Rs 4,073.33 per quintal. In some markets, like Nashik's Lasalgaon Mandi, soybean prices have reached as high as Rs 4,608 per quintal, but they still remain under the MSP. This discrepancy has caused concern among farmers who are struggling to sell their produce at profitable rates.

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CMV360 Says

The state and central governments are taking steps to support farmers through subsidies and MSP-based procurement. While these initiatives offer financial relief, there remains a challenge in ensuring that market prices align with the MSP, allowing farmers to maximize their earnings. The government's continued efforts, including increased import duties on crude edible oil to stabilize soybean prices, reflect its commitment to the farming community.