Soybean prices remain low despite import duty hike on edible oils

Following the hike in import duty on edible oils, domestic prices of edible oils have risen, but soybean prices have seen little to no increase and remain below the Minimum Support Price (MSP) in Madhya Pradesh

Even after the central government increased the import duty on edible oils, soybean farmers in Madhya Pradesh are still not receiving prices that meet the Minimum Support Price (MSP). While the prices of edible oils have increased in the domestic market, soybean prices remain below the MSP of Rs 4,892 per quintal set for the 2024-25 Kharif season. Farmers are currently receiving prices between Rs 4,200 and Rs 4,600 per quintal for new crop arrivals in the region's mandis.

Meanwhile, refined soybean oil prices have increased by 5.75 percent following the government's decision to raise the import duty by 20 percent on September 13. According to the Central Consumer Affairs Department, the average retail price of packaged refined soybean oil jumped from Rs 118.81 per liter on September 13 to Rs 125.65 per liter by September 22. However, despite the increase in oil prices, soybean farmers are yet to see a substantial rise in the rates they receive for their crops.

Yogesh Dwivedi, CEO of Madhya Bharat Consortium of FPOs, told Rural Voice that although new soybean crops have begun arriving in the market, the price remains well below the MSP. He noted that while the import duty increase was intended to help farmers, its benefits may take two to three months to materialize. In the meantime, traders have raised soybean oil prices, but purchase rates for soybeans remain stagnant.

Ram Inaniya, a member of the Sanyukt Kisan Morcha (SKM) Madhya Pradesh, stated that farmer protests over low soybean prices will continue. Many farmers are struggling to cover their costs, and despite the government's promise to buy soybeans at MSP and raise the import duty on edible oils, prices remain below MSP. Farmers are demanding that the price of soybean be increased to Rs 6,000 per quintal.

Kedar Shankar Sirohi, President of the Madhya Pradesh Congress Kisan Cell, said that farmers have not got any relief by increasing the import duty on edible oils by the central government. On the contrary, traders and edible oil companies are benefiting from it. He said that the price of soybean in the markets of Madhya Pradesh is running between Rs 4200 to Rs 4600 per quintal, which is still less than the MSP. On the other hand, edible oil companies have increased the prices of soybean refined oil. In such a situation, the government needs to take more steps to provide relief to the farmers.

Earlier this year, soybean prices in the state dropped to Rs 3,500 to Rs 4,000 per quintal, their lowest in over a decade, sparking widespread protests. For over a month, farmers have been demanding a higher price of Rs 6,000 per quintal, and in response to their anger, the government raised the import duty and started purchasing soybeans. However, prices continue to remain below the MSP.