Maharashtra’s soybean farmers are struggling as market prices have fallen below the Minimum Support Price (MSP) of INR 4,892 per quintal set for the 2024-25 crop year. Despite the MSP being INR 292 higher than last year, current APMC market prices range from INR 2,800 to INR 4,400 per quintal. For instance, prices hit a low of INR 2,800 in Hinganghat and INR 3,000 in Lasalgaon-Vinchur. Although some markets like Latur and Sangli saw higher prices, the modal price remains well below the MSP, fluctuating between INR 4,000 and INR 4,600.
In response to the price drop, State Agriculture Minister Dhananjay Munde announced the opening of soybean procurement centers for 90 days to offer relief, emphasizing that soybeans will be bought at the MSP. The state is also urging the Centre to impose import duties on edible oil, soya milk, and cake to bolster domestic prices.
Maharashtra has expanded soybean cultivation this kharif season to 51.17 lakh hectares, exceeding the average of 41.50 lakh hectares. The drought-prone Vidarbha and Marathwada regions heavily rely on rain-fed soybean and cotton farming, making them vulnerable to price fluctuations and unpredictable weather.
With mounting financial losses, farmers are calling for increased government support, including better price stabilization mechanisms and compensation for weather-related damages. In light of upcoming state elections, the government has also announced compensation of INR 5,000 per hectare for last season’s losses, with similar measures likely this year.
Market experts note that rising imports of edible oil and larger soybean crops in the US and Brazil are contributing to the pressure on domestic prices, disappointing many farmers after last year’s highs.
Source: Business Line
