Soyabean Market Prices Trail Below Minimum Support Price

Strategic Insights -

In the current soyabean procurement season, the market prices are significantly lower than the minimum support price (MSP), causing distress to farmers who are struggling to make a profit. The MSP for soyabean is Rs 5,328 per quintal, but the market price is ranging between Rs 3,800 and Rs 4,200 per quintal in the Kalmana Agricultural Produce Market Committee (APMC). The low prices have resulted in a sharp decline in sales, with the APMC market witnessing only 1000-1200 quintals of soybeans sold on Friday, compared to the ideal range of 4500 to 5000 quintals per day.

Key Takeaways:

  • The market price of soyabean is significantly lower than the MSP, with prices ranging between Rs 3,800 and Rs 4,200 per quintal in the Kalmana APMC.
  • The low prices are discouraging farmers from selling their agri produce, leading to a sharp decline in sales.
  • Brokers attribute the low prices to the high moisture content in soyabean seeds, poor quality of seeds, and international market pressures.
  • The current season is expected to see a 25-30% decline in soyabean crop due to recent rains.
  • The fall in soyabean prices is attributed to a record-high global supply from countries like Brazil and Argentina.

Statistics:

  • Market price of soyabean: Rs 3,800 - 4,200 per quintal (Kalmana APMC)
  • MSP for soyabean: Rs 5,328 per quintal
  • Decline in sales: 1000-1200 quintals (actual) vs 4500-5000 quintals (ideal) per day
  • Estimated decline in soyabean crop: 25-30% (current season compared to previous seasons)

Sources:

  • "Soyabean procurement season gives tough time to farmers" - The Hitavada (distributed by Contify.com, 2025)