The Madhya Pradesh government is contemplating a shift from providing a bonus on paddy to offering a direct subsidy of Rs 2,000 per hectare for all farmers.

This move follows the BJP's election promise to offer additional bonus payments on top of the minimum support price (MSP) for paddy, but the government now believes that the bonus system doesn't adequately support small and marginal farmers.

The chief minister's position is that many small farmers, unable to sell their paddy at the MSP, do not benefit from the bonus system.

The direct subsidy approach would ensure that all farmers, regardless of size, receive financial support. It could also be beneficial in situations where the paddy crop is damaged, as farmers could still receive the subsidy.

There will be no upper limit on the area of land, meaning that larger farmers would receive more support, based on the acreage of paddy they cultivate.

The subsidy plan is being formalized and may be presented for approval in an upcoming cabinet meeting. Farmers will need to provide details of their paddy acreage to determine the exact subsidy amount. This initiative aims to directly benefit a wide range of farmers, including those with smaller holdings.

Additionally, the state government has also fixed the rate of paddy milling, which is expected to benefit rice millers.

Since Madhya Pradesh is a significant contributor to India's paddy and rice supply, this move could have broader implications for the agricultural and rice milling sectors.