Record Soybean Procurement Cleared Despite Low Output

28-Oct-2025 08:49 PM

New Delhi. Although soybean acreage declined sharply by approximately 9-10 lakh hectares during this year's Kharif season compared to last year, and soybean production is projected to fall below 10 million tonnes in the three top producing states—Madhya Pradesh, Maharashtra, and Rajasthan—due to reduced acreage and severe crop damage caused by natural disasters, the central government is preparing for a massive procurement effort.

Although government agencies will not directly procure soybean from farmers in Madhya Pradesh because the Price Difference Payment Scheme has been implemented there, the Union Agriculture Ministry has approved an amount of ₹1,775.53 crore to pay the price difference for 22,21,632 tonnes of soybean in the state.

In Maharashtra, the second-largest producer, the procurement of 18,50700 tonnes of soybean from farmers at the Minimum Support Price (MSP) has been approved, with an allocation of ₹9,860.53 crore for this purpose. Previously, approval for the purchase of oilseeds was granted in Gujarat and Uttar Pradesh.

Approval for purchase is also likely in Rajasthan, the third-largest soybean producer, but no details have been released at this time. Government soybean purchases may also be approved in Karnataka.

There is no doubt that soybean prices have fallen well below the government support price, causing significant financial losses for farmers.

While farmers in Madhya Pradesh are indirectly benefiting from the support price, the plight of farmers in other producing states, including Maharashtra, is dire. In Maharashtra, registration of soybean producers and the activation of government procurement centers has been announced from October 30th. The Chief Minister has asked farmers not to sell their produce until then.