Low Prices, Procurement Delays Leave Madhya Pradesh Farmers With Empty Pockets

Government claims of farmer relief in Madhya Pradesh are increasingly being questioned on the ground, as a combination of delayed procurement, falling market prices, and rigid loan repayment conditions has pushed nearly 6.2 lakh farmers into debt. While the state has announced zero-interest crop loans and procurement at Minimum Support Price, farmers say the system is working against them at the most critical time of the harvest cycle.

At Bhopal's Karond mandi, farmers arriving with wheat are finding themselves in distress. The MSP for wheat this season has been fixed at Rs 2,625 per quintal, with an additional Rs 40 bonus by the state government. However, in reality, traders are offering between Rs 2,000 and Rs 2,200 per quintal. With procurement yet to fully pick up across all divisions, farmers are being forced to sell at these lower rates to meet immediate financial needs.

The procurement process has added to the crisis.

While it began on April 9 in select divisions like Indore, Ujjain, Bhopal, and Narmadapuram, it is scheduled to start only on April 15 in other regions -- a delay of nearly 25 days compared to last year. This gap has proved costly for farmers who rely on timely sales to repay crop loans.

Jagdish Gurjar from Sehore said the delay has left entire villages struggling. 

"We don't have any cash. We will only get money and be able to repay our loans once our grain is sold. I am a defaulter, and in fact, our entire village has become defaulters," he said. 

Bikram Singh Gurjar from Azmat Nagar added, "We will incur overdue charges on our loans. There are weddings and ceremonies coming up in our households, and this situation will create significant difficulties."
For many, the consequences are more severe. 

"I am a defaulter because the government hasn't purchased our wheat and nothing can move forward until the grain is sold," said Devraj Gurjar from Imaliya. "The government's handling of the situation this time has left us completely ruined. Where are we supposed to get loans now? We will be forced to turn to private moneylenders. It is the only option left for us. With wheat selling at Rs 2,100 to Rs 2,200, we simply won't be able to make ends meet," he added.

The story is similar in Agar Malwa mandi in the Ujjain division, where farmers like Kamal Gurjar and Shobhan Singh say they are trapped between low prices and mounting debt. 

Kamal Gurjar said, "The debt amounts to Rs 2-3 lakh, what can we do? We will end up paying interest upon interest. If procurement had been carried out earlier, it would have been to our advantage." 

Shobhan Singh added, "The government completes registration on time, but if procurement is delayed by a month, what are we supposed to do? A farmer needs money for everything. Prices are low. The government had promised Rs 2,700 per quintal, but fixed it at Rs 2,500. In the mandi, it is dropping to Rs 2,000 and Rs 2,200."

Traders, however, point to market factors. 

"The produce arriving right now varies in moisture. Some is wet, some is dry. The average rate is around Rs 2,300. Produce with higher moisture fetches lower prices. Traders set rates based on mill prices," said Vijay Kothari, a trader.

The financial pressure is evident in banking records as well. Farmers who fail to repay loans by March, lose eligibility for zero-interest benefits and are subjected to interest rates of up to 12 per cent. 

Cooperative credit society manager Ashok Kumbhakar explained: "The due date for Kharif loans is March 28. If repayment is not made in March, 6 per cent interest applies, and by April it rises to 12 per cent. If the loan becomes overdue, the farmer cannot avail interest waiver benefits. Had procurement started earlier, outstanding loans could have been adjusted directly."

Data shows that approximately Rs 450 crore remains unpaid across 55 districts, with nearly 80 per cent of defaulters being small farmers. At the same time, 19.04 lakh farmers have registered for procurement this year, with a target of 78 lakh metric tonnes. So far, procurement has begun slowly, with limited quantities purchased.

The political battle over the issue has intensified. The state chief of BJP Kisan Morcha,  Jaipal Singh Chavda, said, "Given the global scenario, specifically the shortage of gunny bags there has been a delay in procurement. The government is addressing the issue and will resolve these challenges."

The Congress, however, has mounted a sharp attack.

State Congress President Jitu Patwari alleged: "1.5 million quintals of wheat were sold in the open market at prices between Rs 1,800 and Rs 2,000, causing a loss of Rs 600 per quintal to farmers. The government acted as a middleman for traders. This delay in procurement led to massive losses for farmers. You could not even arrange gunny bags on time. What bigger example of incompetence is there?"

For farmers across Madhya Pradesh, the crisis is no longer about policy announcements but survival. Caught between deadlines, delays, and depressed prices, they find themselves excluded from the very relief mechanisms meant to support them. As procurement lags and penalties rise, the gap between government promises and ground reality continues to widen, leaving farmers to bear the cost.