NAFED's Soybean Sales – Weak Demand, Market Crisis

06-Mar-2025 12:22 PM

NAFED's Soybean Sales – Weak Demand, Market Crisis
★ NAFED has started selling soybeans procured during the Kharif 2023 season, but due to weak demand, tenders in several states have been canceled.
★ Only Karnataka saw successful bids, where soybeans were sold at ₹4,151-₹4,161 per quintal in the auction held on March 3.
★ In other states, tenders were canceled due to low bid prices.
★ NAFED purchased a total of 14.72 lakh tons of soybeans in the 2024 season, with state-wise procurement as follows:
Karnataka: 18,199.85 tons
Telangana: 81,122.03 tons
Madhya Pradesh: 3,88,796.2 tons
Maharashtra: 8,36,741.29 tons
Rajasthan: 98,866.54 tons
Gujarat: 48,054.81 tons
★ Market Crisis – Farmers in Distress
Soybean prices in mandis are significantly below MSP.
Government sales continue, adding further pressure to the market.
Weak demand for soybean meal and oil has led many processing plants to halt purchases.
Small traders are facing losses and are being forced to shut down businesses.
Farmers are struggling to find buyers, creating uncertainty in mandis.
★ Need for Policy Changes to Boost Domestic Edible Oil Production
To achieve self-sufficiency in edible oil production, major changes in import policies are necessary.
The import duty gap between crude and refined oil should be increased.
Quantitative restrictions on imports should be implemented.
Import duties should be structured to keep market prices close to MSP.
★ The current situation may impact soybean sowing for the upcoming Kharif 2024 season.
★ If the government does not intervene in time, the crisis for farmers may deepen further.