Despite Maharashtra’s position as a soybean production powerhouse, farmers are grappling with a price fall rollercoaster this year. The soybean market price has taken a significant dip, hitting rock bottom and falling below $0,73 per kg in most domestic shops of the state. With only 3.1 million hectares sown till July 10, many farmers are changing their tune and shifting to alternative crops due to low prices and inadequate rainfall. This unexpected turn has left soybean farmers clutching at straws and yearning for better returns.
In some shops, soybean prices are lower than the Minimum Support Price (MSP). Farmers who had put all their eggs in one basket and stored soybeans anticipating higher prices have been left high and dry, receiving lower prices than the previous year. Despite being the country’s primary soybean producer, Maharashtra is caught between a rock and a hard place as prices hit rock bottom even lower than the MSP. The MSP for soybean in the Kharif Marketing Season 2022-23 is $0,52 per kg, leaving farmers out in the cold. These distressing prices have shattered farmers’ hopes of earning decent returns from soybean cultivation. The state’s soybean production cost is approximately $0,77 per kg, adding insult to injury and significantly higher than the MSP.
Besides groundnut, oilseed prices have fallen off a cliff and faced a downward spiral this year. Increased production of other oilseed crops and a near abolition of import duty on edible oils have contributed to the market’s unsteady waters and instability. As Indian business people change tack and turn to imported edible oils due to cost-effectiveness, they find it an uphill battle to purchase mustard and soybean from domestic farmers. Consequently, the prices of both mustard and soybean have been sent on a wild goose chase and negatively impacted. In response, farmers’ organizations are making waves and urging the government to reinstate the previous import duty of 45 percent on edible oils.