Facing protests from farmers across Madhya Pradesh, the Central government has finally approved soybean procurement in the state at the minimum support price (MSP). The price of soybeans has crashed to a 10-year low. However, the government has not announced the quantity of procurement.
Earlier, the Central government issued guidelines for the procurement of soybean from Maharashtra, the second-largest producer of soybean after Madhya Pradesh and Telangana.
The Union government increased the MSP of soybean for the current kharif crop marketing season 2024-25 by Rs 292, from Rs 4600 per quintal during the previous season to Rs 4892 per quintal.
The wholesale price of soybean has fallen to a 10-year low, ranging from Rs 3200 to Rs 3700 in different mandis in August. This drop in price, by 35% compared to the MSP, means that farmers are facing a loss of Rs 1000 to Rs 1500 per quintal.
Although the price has improved, it is still significantly below the minimum support price (MSP). The current wholesale price of soybean in different mandis in Maharashtra is around Rs 4000, which is still low compared to the MSP.
Union Minister of Agriculture and Farmers’ Welfare and Rural Development Shivraj Singh Chouhan has praised Prime Minister Narendra Modi, stating, “Serving farmers is like worshipping God for us.” He acknowledged the soybean farmers' plight due to lower market prices compared to the MSP.
“Earlier, we allowed states like Maharashtra and Karnataka to purchase soybean at MSP,” said Chouhan.
Madhya Pradesh and Maharashtra together produce 83% of soybean, a major source of edible oil, food, and animal feed. Around 44% of the country’s soybean comes from Madhya Pradesh, while 39% comes from Maharashtra.
In a statement on social media platform X, Chouhan assured soybean farmers that their produce will be bought at the MSP rate and that they will be paid the full price for their hard work.