Soybean prices are falling, delays in MSP procurement have increased farmers' troubles

Madhya Pradesh, India’s largest soybean-producing state is facing a decline in soybean prices during the first week of October 2024. Alongside the price drop, the arrival of soybeans in the state’s markets has also significantly decreased compared to last year. In the first seven days of October, a total of 79,997 tons of soybeans were brought for sale in the markets, whereas in October 2023, the figure was 185,194 tons, reflecting a substantial 56% reduction.

Soybean Price Decline:

The first week of October 2024 (01-08 October), the average wholesale price of soybeans in Madhya Pradesh was ₹4,112 per quintal, down from ₹4,280 per quintal in the last week of September 2024, representing a 3.93% decline. During the third week of September, the price was even higher at ₹4,432 per quintal, showing a cumulative drop of 7.22%. A year earlier, in the first week of October 2023, the price stood at ₹4,174 per quintal, which was about 1.49% higher than in 2024, indicating that current prices are below last year’s levels.

Farmers Awaiting MSP Procurement:

The decline in wholesale soybean prices has led to a significant drop in the volume of soybeans arriving at the markets. In the first week of October this year, only 79,997 tons of soybeans were brought for sale, compared to 185,194 tons in the same period last year, marking a 56% reduction. Farmers are hopeful that the government will soon begin purchasing soybeans at the Minimum Support Price (MSP). They plan to bring their crops to the markets when government procurement starts, expecting to receive fair prices. The Madhya Pradesh government has announced that MSP procurement for soybeans will commence on October 25 and continue until December 31.

Soybean Prices in Other States:

While Madhya Pradesh has seen a significant drop in prices, the situation in other states varies slightly. In Maharashtra, soybean prices stood at ₹4,237 per quintal, down from ₹4,414 per quintal the previous week, showing a 4.01% decline. Gujarat saw a marginal drop of 0.32%, with prices falling from ₹4,404 per quintal to ₹4,390 per quintal. However, states like Chhattisgarh witnessed a price increase, with soybeans priced at ₹4,310 per quintal, up from ₹4,241 the previous week, reflecting a 1.63% rise. The decline in soybean prices and the reduced market arrivals in Madhya Pradesh indicate that farmers are holding back, awaiting government procurement at MSP, while market uncertainty and upcoming government policies influence their strategy.