Government to Buy Soybeans at MSP, Millions of Farmers to Benefit

Key Highlights

• Government to buy soybeans at Rs 4,892 per quintal MSP.
• Benefit to farmers in Maharashtra, Karnataka, and Telangana.
• NAFED and NCCF will handle procurement.
• Market prices are currently lower than MSP.
• Soybean cultivation increased to 125.11 lakh hectares this season.

The Indian government has made a crucial decision to support soybean farmers by purchasing their crops at the Minimum Support Price (MSP). This step comes as a relief to farmers who are struggling with falling soybean prices in the market. The move will ensure that farmers get a fair price for their produce, preventing further financial losses.

Why is the Government Buying Soybean at MSP?

Soybean prices have been declining, making it difficult for farmers to even recover their production costs. This has led to frustration among farmers, particularly in Maharashtra, where one farmer even destroyed his crop in protest. To address these concerns, the government has decided to buy soybeans at MSP, benefiting millions of farmers across Maharashtra, Karnataka, and Telangana.

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MSP for Soybean in 2024-25

The government has set the MSP for soybeans for the 2024-25 financial year at Rs 4,892 per quintal, an increase from last year’s rate of Rs 4,600 per quintal. This represents a Rs 292 increase, providing farmers with better compensation for their hard work.

Agencies Responsible for Soybean Purchase

Two cooperative agencies, NAFED and NCCF, have been tasked with purchasing soybeans from farmers under the Price Support Scheme. These agencies will work alongside state-level bodies to ensure that farmers in the three states get the MSP for their crops. NAFED and NCCF already manage the purchase of other crops like pulses, cotton, and maize, so they have the expertise to support soybean farmers effectively.

Current Market Prices of Soybean

In the three states where the government will be purchasing soybeans, the current market prices are significantly lower than the MSP:

• Maharashtra: The average price is Rs 4,325 per quintal, with the lowest being Rs 4,000 and the highest at Rs 4,505.
• Karnataka: The average price is Rs 4,176.5 per quintal, with the lowest at Rs 3,419 and the highest at Rs 4,600.
• Telangana: The average price is Rs 4,489 per quintal, with the lowest being Rs 4,369 and the highest at Rs 4,609.

How This Will Benefit Farmers

With the government stepping in to buy soybeans at MSP, farmers are expected to see a significant improvement in their financial situation. Currently, the market prices of soybeans are lower than the MSP, making it difficult for farmers to make profits. The government's intervention is likely to stabilize or even raise market prices, benefiting not just those selling to the government but all soybean farmers.

Increase in Soybean Acreage

Soybean cultivation has increased across the country this season. According to the Union Agriculture and Farmers Welfare Ministry, by September 2, soybeans had been sown on 125.11 lakh hectares, which is 2 lakh hectares more than last year’s 123.85 lakh hectares. This increase shows the growing importance of soybean as an oilseed crop in India.

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CMV360 Says

The government’s decision to purchase soybeans at MSP will not only protect farmers from losses but also encourage them to continue growing this essential crop. By ensuring fair prices, the government aims to promote the cultivation of oilseeds and support the agricultural community during challenging times.