Huge increase in government procurement of soybean and groundnut

14-Feb-2025 01:27 PM

The government has made a significant push for procurement of soybean and groundnut under the Price Support Scheme (PSS) during the 2024-25 Kharif marketing season.

The National Agricultural Cooperative Marketing Federation of India (NAFED) has achieved record purchases from farmers, primarily in key producing states, at the Minimum Support Price (MSP).

For soybean, the MSP has been increased to Rs 4892 per quintal, up from Rs 4600 last season. The major soybean-producing states, including Maharashtra, Madhya Pradesh,

Rajasthan, Telangana, Gujarat, and Karnataka, saw substantial procurement. As of now, over 14.74 lakh tonnes of soybean has been procured across India.

Maharashtra leads with 8.37 lakh tonnes, followed by Madhya Pradesh at 3.89 lakh tonnes, and Rajasthan at 99 thousand tonnes. Despite the increase in MSP, the wholesale market prices in some states are still below the government support price.

For groundnuts, the MSP has been set at Rs 6783 per quintal, with Rajasthan being the largest contributor, accounting for 9.07 lakh tonnes, followed by Uttar Pradesh with 71 thousand tonnes. Overall, more than 12.75 lakh tonnes of groundnut have been procured nationally.

Interestingly, despite the record procurement figures and the government's efforts to stabilize prices,

the wholesale market prices of soybean and groundnut in some regions are lower than the MSP, which may raise concerns regarding price disparities and the effectiveness of the procurement process in influencing market trends.