With only a week remaining for the government’s market intervention programme to conclude, procurement agencies Nafed and NCCF, the two national level co operative organizations, have achieved a record procurement of 1.63 million tonnes (MT) of soybean from farmers under the Minimum Support Price (MSP) scheme across six states.
As per news reports, total soybean procurement in the ongoing 2024 kharif season is expected to exceed 1.7 MT by the time operations conclude next week. This marks a significant jump from the 2023 kharif season, when only 70,000 tonnes were procured under MSP.
Among the six states where procurement took place, Maharashtra (0.78 MT), Madhya Pradesh (0.62 MT), Rajasthan (80,994 tonnes), and Telangana (83,075 tonnes) contributed the largest volumes. Currently, procurement under the agriculture ministry’s Price Support Scheme (PSS) is still ongoing in Maharashtra, Rajasthan, and Gujarat.
This record-breaking purchase aligns with the government’s broader strategy to support farmers by ensuring MSP-based procurement of oilseeds and pulses, thereby boosting domestic production and reducing import dependence.
Market conditions have played a key role in driving procurement. The average mandi price of soybean has remained slightly below the MSP of ₹4,892 per quintal for the 2024-25 season (July-June), largely due to a drop in global soymeal prices. A surplus in global supply has led to price declines, particularly as soybean—containing only 18-20% oil—is primarily used as animal feed.
Reflecting this trend, ex-factory soymeal prices in Indore have plummeted from ₹4,150 per quintal at the beginning of the year to ₹2,800 per quintal as of Tuesday.
To mitigate the impact of falling prices, the agriculture ministry had earlier approved the procurement of 3.22 MT of soybean under PSS across key soybean-producing states, including Madhya Pradesh (1.36 MT), Maharashtra (1.3 MT), Rajasthan (0.29 MT), Karnataka (0.1 MT), Gujarat (0.09 MT), and Telangana (0.05 MT). With the procurement drive nearing its conclusion, the government’s intervention has provided much-needed price stability for farmers while reinforcing efforts to enhance oilseed production in the country.
