New Delhi. The central government's subordinate agencies have started purchasing soybean at the declared minimum support price of Rs 4892 per quintal, but no positive effect is being seen on the market price. The trend of softening in soybean prices continued during the week of 8-14 November. The three top producing states - Madhya Pradesh, Maharashtra and Rajasthan - have promised to increase the support price of soybean to Rs 6000 per quintal and the Agriculture Ministry has given approval to purchase soybean with 15 percent moisture at the minimum support price, due to which its market price is expected to improve. With the aim of raising the price of soybean, the government had increased the import duty on edible oils by 20 percent, but it has not had any effect till now.

During the week under review, the plant delivery price of soybean declined by Rs 100-200 per quintal and fell to between Rs 4200/4400 per quintal. This has caused great dissatisfaction among farmers. The pace of government procurement is very slow while it is arriving in large quantities in the markets.

The pressure on the prices of soya refined oil and soya meal is also increasing. The domestic and export demand for soya meal is normal but it may increase at lower prices. The export performance of soya meal has been better this year but the environment for rising soyabean prices is yet to be created.

The average daily arrival of soyabean is between 6.85 to 8.50 lakh bags (each bag of 100 kg) while it is being purchased in limited quantity by traders and crushers-processors.