Land compensation for MP farmers to be 4X of market rate: CM

Bhopal: In a major decision, the Madhya Pradesh cabinet on Wednesday decided to raise compensation for agricultural land to four times the existing market rate (collector's guideline rates) in the event of its acquisition by any state agency or the central government.At present, the compensation of both the urban and rural land in the state is double the market rate. Addressing a press conference at his official residence in the state capital on Wednesday, Chief minister Mohan Yadav said while the rate of compensation of the urban land within municipal limits will be double the existing market rate, as it is at present, the compensation for rural land will be multiplied by two from the existing rate. Calling it a historic decision in the interest of farmers in 2026, marked as the ‘Year of Farmers' Welfare', the CM said, "What we have done is raise the compensation for acquisition of rural land from factor one to factor two. The compensation for urban land will remain in factor one."Yadav said the move will enable farmers to get four times the compensation of the existing collector's guideline rates in a particular district. The CM said the revised compensation rates will not only benefit farmers but also the government as its infrastructure projects, which are delayed often in the face of resentment over compensation, would be implemented expeditiously. Farmers, who hold their land very dear, would be more conciliatory when it comes to parting with it for a project if they are paid four times the market rate as compensation, the CM reasoned.At a time when the govt is investing Rs 75,000 crore annually in infrastructure development, projects should not get needlessly entangled in agitation, litigation or any other hindrance, Yadav said, adding the govt started working on a revised compensation model for acquired rural land in November 2025.Carrying forward the process this year, a cabinet sub-committee was formed on Jan 13, which decided on a 100% hike in compensation for rural land, making it fourfold of the collector's guidelines rates. To a question whether the state govt had enough funds to continue with welfare schemes such as ‘Ladli-Behna' while also raising the compensation for acquired agricultural land to four times the market rate, considering the rising public debt, the CM said, "We are constantly expanding size of our budget with the eventual target of doubling it in the next five years. We are availing loans according to guidelines laid down by the Niti Aayog. You must remember that there has not been a single instance of overdraft in my regime."