Soybean Prices Remain Below MSP Despite Duty Hikes
Despite raising import duties on edible oils to support domestic soybean prices, mandi prices still fall below the MSP of ₹4,892/quintal, averaging ₹4,500-₹4,700/quintal. Moisture from pre-harvest rains and oversupply continue to pressure prices. Government agencies procured 26,442 tonnes under the Price Support Scheme, yet a projected 13.36 million tonnes of output suggests sustained market challenges.
Seven weeks after India raised import duties on edible oils, soybean prices continue to lag below the government-set Minimum Support Price (MSP) of Rs 4,892/quintal. Current mandi prices range from Rs 4,500 to Rs 4,700 per quintal due to factors such as high crop moisture content caused by pre-harvest rains. Government agencies like Nafed and NCCF have so far procured 26,442 tonnes of soybeans under the Price Support Scheme (PSS) across major producing states. Despite projections for increased soybean output and a rise in import duties to support domestic production, the oversupply and lower demand have prevented mandi prices from reaching the MSP.
Key Highlights
# Soybean mandi prices continue to trail below the MSP of Rs 4,892/quintal.
# Import duties on edible oils were raised to support domestic prices.
#Agencies have procured 26,442 tonnes of soybeans under the PSS.
# India’s 2024-25 soybean output is forecasted at 13.36 million tonnes.
# Edible oil imports may drop by 1 MT due to higher oilseed output.
Soybean prices in Indian mandis have persistently stayed below the Minimum Support Price (MSP) of Rs 4,892 per quintal, despite government efforts to elevate market rates by raising import duties on edible oils. Average mandi prices currently range between Rs 4,500 and Rs 4,700 per quintal, influenced by supply factors such as high moisture content due to pre-harvest rains. Over the past seven weeks, government agencies like Nafed and NCCF have actively intervened, procuring approximately 26,442 tonnes of soybean from farmers across six major producing states under the Price Support Scheme (PSS). These purchases aim to stabilize market prices amid an anticipated peak in arrivals from late October to December.
Supporting the price increase, the government elevated import duties on crude and refined edible oils by 22%, a strategic decision aimed at curbing cheaper imports and promoting domestic oilseed production. India’s edible oil imports stand at around 16.5 million tonnes annually, but production is expected to increase due to favorable weather conditions, reducing import reliance. The agriculture ministry projects a 2.2% year-on-year increase in soybean production to 13.36 million tonnes for the 2024-25 crop year, helping offset some of the pressures from imports.
India’s edible oil imports for the 2024-25 oil year may decrease by about 1 million tonnes due to rising oilseed production, especially in soybeans and rapeseed, according to the Solvent Extractors’ Association of India. This projection aligns with government strategies to strengthen the oilseed sector domestically, yet mandi prices are likely to remain under the MSP until further stabilization.
Finally
Despite intervention and higher duties, soybean prices remain below MSP, signaling a need for continued support and monitoring in the coming months.
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Source Link : https://in.investing.com/news/commodities-news/soybean-prices-remain-below-msp-despite-duty-hikes-4518509
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