Signs of increase in production of groundnut and soybean due to weak price prevailing in the markets

06-Nov-2024 07:12 PM

New Delhi. On the basis of good increase in sowing area during the Kharif season, the Union Agriculture Ministry has estimated an increase in the production of groundnut and soybean, while heavy arrivals in the markets and weak prices are also indicating an increase in its production.

According to the Ministry of Agriculture, during the current Kharif marketing season of 2024-25, as compared to the 2023-24 season,

the domestic production of groundnut is estimated to jump by 17 lakh tonnes from 86.60 lakh tonnes to 103.60 lakh tonnes and soybean production is estimated to increase by 3 lakh tonnes from 130.60 lakh tonnes to 133.60 lakh tonnes.

The wholesale market price of these two major oilseeds of the Kharif season remained soft during the month of October, while there was a heavy arrival of its new goods.

Crushing-processing units did not show much interest in buying it at high prices as they did not see any supply crisis.

The central government has decided to buy groundnut and soybean at the minimum support price, but only when its strong purchase from the farmers starts, there can be hope of some strengthening in the market price.

The interesting fact is that the production estimate of soybean and groundnut by the Ministry of Agriculture for the current Kharif marketing season is based on discussions with all the concerned parties.

In Gujarat, there was a significant increase in the sowing area of ​​groundnut this year and the weather conditions were also favorable for the crop, so there is a possibility of a significant improvement in the average yield rate there.

The central government has increased the minimum support price (MSP) of soybean by 6.3 percent to Rs 4892 per quintal and the support price of groundnut by 6.4 percent to Rs 6783 per quintal for the 2024-25 season as compared to the 2023-24 season.