News Capsule: New Crop Near Harvest: Soybean Prices Still Below MSP
06-Oct-2025 04:39 PM
News Capsule: New Crop Near Harvest: Soybean Prices Still Below MSP
★ Soybean prices have once again become a matter of concern for Indian farmers. In Indore, soybean prices in October 2025 stood at ₹4,400 per quintal, while the government-declared Minimum Support Price (MSP) is ₹5,328 per quintal.
★ This means farmers are being forced to sell their produce at nearly ₹928 per quintal below MSP.
★ In previous years, soybean prices were close to or even higher than MSP. For instance, in October 2021, soybean prices were around ₹5,000 per quintal, much higher than the then MSP of ₹3,950 per quintal.
★ However, the current situation — with market rates below MSP — is directly impacting farmers’ incomes. Not only have their earnings declined, but traders have also reduced purchases as demand-supply balance has weakened.
★ Due to weak market sentiment, farmers are compelled to sell their produce at lower rates, often under distress.
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Key Reasons Behind Prices Falling Below MSP
★ Rising imports of edible oils
★ Lower demand for soybean meal due to DDGS (Distillers Dried Grains with Solubles)
★ Reduced crushing activity
★ Decline in export demand owing to lower international soybean meal prices
★ Ample availability of soybean, soy oil, and soymeal in global markets
★ Imbalance in international trade and prices
★ Recently, the Bhavantar Scheme was announced in Madhya Pradesh to compensate farmers for lower prices. However, farmers in other states have been left out — through no fault of their own.
★ This disparity could further distort market equilibrium in the coming months.
Important Disclaimer:
This report is for informational purposes only I-Grain India does not take any responsibility for profits or losses and does not promote any specific market movement (bullish or bearish). *Please make decisions based on your own judgment and understanding.