Despite Record Government Purchase, Soybean Market Price Remains Below MSP

21-Apr-2025 08:38 PM

New Delhi. Despite a record procurement of about 14.72 lakh tonnes of soybean by NAFED under the Price Support Scheme (PSS) during the 2024–25 Kharif marketing season, the wholesale market price of soybean remains well below the government-declared Minimum Support Price (MSP) of Rs. 4892 per quintal. While farmers who managed to sell their crop at government procurement centers received the MSP, many others continue to suffer losses.

According to official data, NAFED purchased the largest quantity of soybean in Maharashtra at 8,36,741 tonnes, followed by Madhya Pradesh (3,88,796 tonnes), Rajasthan (98,867 tonnes), Gujarat (48,055 tonnes),

Telangana (81,122 tonnes), and Karnataka (18,200 tonnes), totaling 14,71,781 tonnes nationwide. Additionally, the National Cooperative Consumers Federation also participated in soybean procurement.

In parallel, NAFED also made a record purchase of 14.43 lakh tonnes of groundnut during the same season, with the highest procurement from Gujarat (9,22,669 tonnes), followed by Rajasthan (4,38,886 tonnes), Uttar Pradesh (79,601 tonnes), and Karnataka (2054 tonnes).

While the auction of groundnut stock has begun in Rajasthan, the release of soybean stock into the open market has been deferred due to concerns raised by industry bodies. They fear further price drops could discourage farmers from sowing soybean in the next season.

In addition to soybean and groundnut, NAFED also purchased 3,272 tonnes of sunflower in Karnataka at Rs. 7280 per quintal.