New Delhi. Soybean plant delivery prices in Maharashtra rose by Rs. 50 to Rs. 150 per quintal during the week of December 13-19. This surge was attributed to strong government procurement of this important oilseed at the Minimum Support Price (MSP) of Rs. 5328 per quintal, and increased demand from the refining industry due to reduced imports.

The central government has approved the procurement of 18.51 lakh tonnes of soybeans in Maharashtra this year. Although the Bhavantar Bhugtan Yojana (price difference payment scheme) is in effect for soybeans in Madhya Pradesh, prices there also rose by up to Rs. 150 per quintal. Similarly, the plant delivery price of soybeans in Rajasthan increased by Rs. 100 per quintal.

However, the expected increase in refined soybean oil prices did not materialize due to weak demand. Soybean oil prices saw only a marginal increase of Rs. 2 to Rs. 5 per 10 kg, while in some places, prices even softened. The price of refined soybean oil fell by Rs. 15 to Rs. 1265 per 10 kg in Kota, Rajasthan, and by Rs. 5 each in Kandla, Gujarat, and Haldia, West Bengal, to Rs. 1245 per 10 kg. In Mumbai, it remained unchanged at the previous level of Rs. 1250.

Soybean oil prices also remained soft in the international market, which is expected to provide some relief to India. Due to the significant depreciation of the rupee, the cost of importing soybean oil has increased considerably.  Consequently, Indian refiners have either canceled or postponed the shipment of approximately one lakh tonnes of soybean oil purchased for December-January shipments. This is impacting exporters in Argentina.

During the week under review, soybean arrivals in wholesale markets across the country were recorded at 550,000 bags (quintals) on December 16, 450,000 bags on December 17, 400,000 bags on December 18, and only 170,000 bags on December 19.

Due to good trading activity in soybean meal, its price increased by ₹500 to ₹1500 per ton in Maharashtra.