MP Government Announces Major Move: Will Procure Kodo and Kutki, Farmers to Get ₹1,000 per Quintal Incentive

Krishi Dunia

• 15 Oct, 2025 01:14 PM IST ,
• Updated Wed, 15 Oct 2025 01:43 PM

The Madhya Pradesh government has taken a historic decision to support farmers of the state. In a cabinet meeting chaired by Chief Minister Dr. Mohan Yadav on Tuesday, 14 October 2025, it was decided that the government will now procure coarse cereals like Kodo and Kutki. This step is aimed particularly at tribal farmers, ensuring them better market access and fair prices.

Government Procurement of Kodo and Kutki for the First Time

For the first time, the state will purchase Kodo and Kutki from farmers under the Rani Durgawati Shri Ann Incentive Scheme. Procurement will focus on districts where these crops are extensively cultivated, including:
Jabalpur, Katni, Mandla, Dindori, Chhindwara, Shahdol, Anuppur, Umaria, Rewa, Sidhi, and Singrauli.

Farmers from other districts may also participate, subject to government approval.

Farmers to Receive ₹1,000 per Quintal Incentive

The government announced that procurement will be carried out through the Shri Ann Federation (Shri Ann Consortium of Farmer Producer Company Ltd.).

• Kutki price: ₹3,500 per quintal
• Kodo price: ₹2,500 per quintal

Additionally, farmers will receive a ₹1,000 per quintal incentive, which will be transferred directly to their bank accounts via DBT (Direct Benefit Transfer).

Under this scheme, the government aims to procure around 30,000 metric tonnes of Shri Ann crops. An interest-free fund of ₹80 crore from the Price Stabilization Fund will support this procurement.

Promoting Crop Diversification

This initiative encourages farmers to move away from traditional crops and focus on coarse cereals, which are not only nutrient-rich but also drought-tolerant, providing a stable income in the face of climate change.

Soybean Farmers Also Benefit: Price Deficit Payment Scheme Approved

The cabinet also approved a soybean price-deficit scheme for Kharif 2025:

• Implemented under the central government’s Price Deficit Payment Scheme.
• Duration: 24 October 2025 to 15 January 2026.
• Sales will be conducted in notified state mandis.
• A “model rate” will be calculated based on the 14-day average sale price.
• If the sale price is below the MSP (Minimum Support Price), the difference will be directly transferred to farmers via DBT.

This year, the MSP for soybean has been fixed at ₹5,238 per quintal.

Double Benefit for Farmers

With these two major decisions —

1. Government procurement of Kodo and Kutki
2. Approval of soybean price-deficit scheme

— millions of farmers in Madhya Pradesh are expected to benefit. The government’s objective is clear: double farmers’ income and encourage crop diversification.