New Delhi: Due to the depreciation of the rupee, which has increased the cost of importing soybean oil, Indian refiners are importing smaller quantities of crude soybean oil from Argentina and Brazil and are showing greater interest in purchasing from domestic crushing units. This is encouraging crushing plants to buy soybeans at slightly higher prices. In Madhya Pradesh, the Bhavantar Bhugtan Yojana (price difference payment scheme) is in effect for soybean procurement, while in states like Maharashtra and Rajasthan, the government is procuring soybeans from farmers at the Minimum Support Price (MSP).

During the week of December 20-26, the plant delivery price of soybeans increased by Rs. 100-200, reaching a high of Rs. 4800 per quintal in Madhya Pradesh, Rs. 5080 per quintal in Maharashtra, and Rs. 5150 per quintal in Rajasthan. The Minimum Support Price (MSP) for soybeans this year has been fixed at Rs. 5328 per quintal.

Due to the rise in soybean prices, the price of refined soybean oil also increased by Rs. 15-20 per 10 kg, and millers were able to conduct good business. In Kota, the price increased by Rs. 20 to Rs. 1290 per 10 kg. The price also improved by Rs. 5 in Haldia, but remained stable at Rs. 1250 per 10 kg in Mumbai and Kandla.

On December 20, 3.5 lakh bags of soybeans arrived in wholesale markets nationwide. Each bag of soybeans weighs 100 kg or 1 quintal.

There was heavy trading of soybean meal in Maharashtra, resulting in a sharp increase of Rs. 1000-2000 per ton in its price. Strong industrial and export demand provided the basis for this price increase.

Soybean oil imports are likely to remain low in January, which could further support and strengthen domestic soybean market prices. Crushing and processing units are showing strong activity in purchasing soybeans.