M.P. suspends e-token system for fertilizer, order buy of 60% of moong crop

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The Madhya Pradesh government has agreed to suspend the e-token system for fertilizer distribution and assured farmers to procure 60 per cent (from current 25 per cent) of the moong crop. After this, agitating farmers have called off their protest in Bhopal. However, the protest has highlighted policy gaps and risk of attempting reforms in the farm sector, experts said.

Reacting to a letter from the state’s Agriculture Minister Aidal Singh Kansana, Union Agriculture Minister Shivraj Singh Chouhan on July 29 wrote to State Chief Minister Mohan Yadav pointing out that the Centre had already approved procurement of up to 4.55 lakh tonnes (lt) of summer moong to Madhya Pradesh under the Price Support Scheme, accounting to 87 per cent of the total quantity approved nationwide under the PM-AASHA scheme whereas the state has bought only 60,000 tonnes.

Chouhan said that out under the PM-AASHA scheme guidelines, only 25 per cent of production is permitted to be procured under MSP whereas any quantity above it has to be the sole responsibility of the State.

A former agriculture secretary of MP said that gaps have to be corrected if required and States cannot be blamed every time. Under the PM-AASHA scheme, the Centre has decided who should be the “central nodal agencies” to procure the crop from farmers, and the agencies are solely responsible to it. “Let the Centre nominate state agencies independently and hold them accountable to any delay or non-procurement,” the former official suggested.

Under the PM-AASHA scheme, which facilitates buying of oilseeds and pulses from farmers at minimum support prices (MSPs), Nafed and NCCF are the agencies approved to the procurement operation.

Due to high level of moong production in the summer (Zaid) season, Madhya Pradesh is the largest producer of moong in the country, having over 40 per cent share. In 2025-26, out of 44.92 lt moong produced in the country, 18.39 lt (including 18.18 lt only in the summer season) was produced in Madhya Pradesh. If the State is able to procure 60 per cent of summer moong, it might have to buy nearly 11 lt.

On the decision to suspend the e-token system to distribution of subsidised fertilisers primarily urea and DAP, sector leaders are divided. While a manufacturer of micronutrient supported the move, a top official of a leading fertilizer company welcomed the suspension and said that “it was supposed to be stopped.”

Farmer leader Kedar Sirohi, who was part of the protest that started from Narmadapuram on July 27 and reached Bhopal next day, said after the protest march reached near the chief minister’s residence, the government agreed to allow farmers sell 3 quintals of moong per acre whereas earlier it was 1.2 quintal per acre. however the major relief has come from withdrawal of e-token system.”

Designed to curb black marketing, and prevent long queues at retail outlets, e-token system was supposed to streamline urea and DAP distribution. Farmers were expected to register using Aadhaar or other approved ID as well as mentioning land records and book a date and time slot to picking up the fertilizers from the cooperative societies, depending on availability.

Sirohi said: “to the first time, the government was deciding what nutrients and how much quantity farmers should consumption without taking any responsibility on the output or yield. How can this be acceptable.? When we wanted to buy DAP, they were denying us SSP or vice versa. Similarly, when we wanted to buy urea, the government was forcefully selling other fertilizers with it in the name of balanced consumption.

According to the State’s e-Vikas portal, created to e-token booking, the new system of fertiliser distribution has been developed to “ensure that fertiliser supply aligns with actual standards, thereby fostering efficiency, transparency, and accountability.”

State minister Kansana said that a committee would be formed to examine complaints and practical difficulties relating to the e-token system to fertiliser distribution and recommend improvements. Till the committee submits its recommendations and necessary changes are carried out, the e-token system remains suspended, he said.

Published on July 30, 2026

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