Farmers disappointed due to soyabean prices being less than last year, cheap edible oil imports main reason

Farmers are reaching the market to sell their produce after soyabean harvest in the country, but they say that they are getting lesser prices than those last year. Most of the farmers say that the rate for soyabean was Rs 7,000-Rs 8,000 per quintal last year, but they are getting only Rs 4,000-Rs 4,500 this year. Farmers and traders both believe that the soyabean rates are likely to remain less than those last year.

Speaking to Rural Voice, soyabean farmers said that the produce of early soyabean crops is reaching the market in smaller quantities. Yet, the soyabean rates are not rising. Farmers say that when the soyabean crop reaches the market in greater quantities in another 15-20 days, the soyabean rates may witness a further decline.

The government has fixed the Minimum Support Price (MSP) for soyabean at Rs 4,300 per quintal for the current Kharif Marketing Season (2022-23), which is Rs 350 more than the MSP of Rs 3,950 last year. The reduction in import duty on edible oils and the fall in edible oil prices in the international market are believed to be the reasons behind the fall in soyabean prices. Farmers say that in order to check the fall in prices, the import duty should be increased on edible oils, including soyabean oil, so that farmers may be protected from cheap imported oil. On the other hand, the government has increased the concessional rates of import duty on edible oils up to 31 March 2023 so that edible oil prices may remain low in the domestic market.

Yogesh Dwivedi, CEO, Madhya Bharat Consortium of FPOs, told Rural Voice that farmers were reaching the market with soyabean produce, but they are getting rates of Rs 4,000-Rs 4,500 per quintal this year in comparison to the Rs 7,000-Rs 8,000 that they got last year, which had fetched the farmers good profit. The farmers have to be satisfied with less prices this year.

The government has reduced the import duty on edible oils, which is causing the farmers a substantial loss as these oils are being imported in large quantities, said Dwivedi. The government should increase the import duty in the farmers’ interest so that they may get better prices.

Speaking to Rural Voice, Someshwar Golgire, a farmer from Jaisinghpur in the Kolhapur district of Maharashtra, said, “The soyabean prices in the market are Rs 4,200-Rs 4,500 per quintal at present. Now, farmers had cultivated soyabean in larger areas in view of the higher prices they got last year. The fall in prices has left them disappointed.”

Subhash Patil, a farmer from the Gulai village of the Burhanpur district in Madhya Pradesh, sowed soyabean in 35 acres. His early crop has been harvested. He has reaped a harvest of 8-10 quintals of soyabean per acre on average. He said, “The soyabean rates vary from Rs 3,500 to Rs 4,500 in various markets this year. The soyabean prices are very low in comparison to last year.” He said that farmers had sown soyabean in about 25,000 hectares in Burhanpur in the hope of better prices this year.

Kaluram Vishwakarma, a farmer from Naratra in the Raisen district, told Rural Voice that he had sown soyabean in 10 acres that is now ready for harvest. He said that the soyabean prices in the markets of his area were Rs 4,000-Rs 5,500 per quintal whereas he had gotten up to Rs 8,000 per quintal last year. He said that if the government imported edible oils, it would lead to a further decline in prices. So, the government should not import soyabean oil now. Vishwakarma also said that soyabean exports should be opened so that farmers might get better prices.

Dr Pratik Kumar Dubey, an agriculture scientist from Krishi Vigyan Kendra (KVK), Raisen, said that the early crop of soyabean was ready for harvest in Madhya Pradesh and some of the crops were being harvested. Farmers will reach the markets in large numbers in the next 10-15 days.