Impact of Increased Government Procurement of Oilseeds

04-Jun-2025 09:27 AM

Impact of Increased Government Procurement of Oilseeds
★ Over the past few months, there has been a significant rise in government procurement of oilseeds like mustard and soybean. These oilseeds are now being sold through auctions in large quantities.
~~~~~~~~~~~
Tender Details:
Mustard (Rabi 2024–25)
Quantity: 1,01,758 tonnes
Tender Date & Time: 05.06.2025, from 12:00 PM to 12:45 PM
Centres: Hisar, Fatehabad, Bhiwani, Rewari, Jhajjar, Mahendragarh, Palwal
~~~~~~~~~~~
Soybean (Kharif 2024)
Tender Date: 04.06.2025 (Today, 11:00 AM to 11:30 AM)
Telangana: 44,828.2 tonnes, 20 centres
Madhya Pradesh: 2,36,219 tonnes, 299 centres
~~~~~~~~~
★ Due to prices consistently remaining below the Minimum Support Price (MSP) during both the previous and current seasons, government procurement increased. Now, the same oilseeds are being sold off.
★ In the auction held on 02.06.2025, soybean was sold at Rs. 4,370 per quintal, while the old MSP was Rs. 4,892.
★ According to the data, soybean is being sold at a loss of Rs. 522 per quintal, considering procurement and associated costs.
★ It's hard to say who is actually benefiting from this sale, but one clear outcome is a reduction in government funds, which are ultimately collected through taxpayer money.