The central government procured 20 lakh tonnes of soyabean, but prices remain depressed due to oversupply, weak demand, and policy failures. Delays in farmer payments, limited procurement infrastructure, and competitive international soyameal prices contribute. Traders urge integrating soyabean into PDS, delaying stock sales, and expanding procurement to stabilize the volatile market.
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The central government has procured 20 lakh tonnes of soyabean, but wholesale prices have not increased, as the majority of the crop remains unmarketed.
Soybean (Glycine max) is a legume crop that is rich in protein and fiber. It can be grown in tropical and subtropical regions, and in a variety of soils.
Madhya Pradesh is the top producer of soybean in India, followed by Maharashtra and Rajasthan.
The majority of soybean production is utilized for extracting oil and meal, which is used as animal feed in the poultry and livestock industry.
India’s soybean production for 2024-25 is estimated at 133.60 lakh tonnes, up from 130.62 lakh tonnes the previous year.
The government aimed to procure 30 lakh tonnes but has only acquired 14.71 lakh tonnes (as of February 2025), with operations ending in most states.
Even before harvest (September 2024), prices fell below the Minimum Support Price (MSP) of ₹4,892/quintal, averaging ₹4,511/quintal in November and ₹4,867/quintal in January.
Oversupply and Weak Demand
As of February 1, 57.40 lakh tonnes of soyabean (42% of the total crop) remained with farmers or traders.
Indian soyameal (used for animal feed) is priced at $380/tonne, higher than Argentina’s $360/tonne, limiting export competitiveness. Traders doubt price hikes even if exports rise.
Logistical and Policy Failures
Farmers, especially smallholders, faced delays in registration and payment, forcing them to sell at lower rates to traders.
The government holds 20 lakh tonnes of soyabean, which traders fear will flood markets if sold, further depressing prices.
Structural Issues
Only a fraction of farmers (8.46 lakh) benefited from procurement, leaving millions dependent on volatile private markets.
Traders have requested export subsidies, but none have been granted, limiting demand.
Role of International Markets
India’s higher soyameal prices compared to Argentina reduce global demand, constraining export-driven price recovery.
Oversupply from major producers like Brazil and the U.S. keeps international prices low, indirectly pressuring domestic markets.
Integrate Soyabean into Public Distribution System (PDS): Use stocks as a protein additive alongside rice/wheat to boost demand.
Delay Government Sales: The Soyabean Processors Association (SOPA) urges the government to avoid selling stocks until July to stabilize prices.
Expand Procurement Infrastructure: Improve registration centers and payment systems to reach more farmers.
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PRACTICE QUESTION Q. Explain the concept of Minimum Support Price (MSP) and its significance in Indian agriculture. How does it act as a safety net for farmers? 250 words |
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