iGrain India - Mumbai: The Solvent Extractors Association of India (C), a key body representing the domestic vegetable oil and oilseed sector, has called on the Central Government to purchase significant quantities of soybean from farmers at the Minimum Support Price (MSP) and create a buffer stock. This initiative would ensure that soybean is available to crushing and processing units at reasonable prices during times of supply disruptions, such as floods, while also ensuring farmers receive fair compensation for their produce.The MSP for soybean has been increased from Rs 4600 per quintal last year to Rs 4892 this year. However, the wholesale market price is currently much lower than the MSP, causing significant financial losses for farmers.
In a recent meeting with the Union Agriculture Minister, the association emphasized the need for the government to purchase as much soybean as possible from farmers and establish a buffer stock.
According to the president of the association, soybean producers are facing severe financial difficulties due to the disparity between the government-set MSP and the prevailing market prices.
In many regions, farmers are being forced to sell their produce for Rs 4200-4300 per quintal, well below the MSP.
Although the government increased the import duty on edible oils by 20 percentage points to raise the market price of oilseeds, the measure has not had the desired effect.
Earlier, the Agriculture Minister had announced that the government would purchase the entire soybean arrival at MSP to support farmers.
However, delays in implementing the market intervention scheme could demoralize farmers. While the government has permitted the purchase of over 30 lakh tonnes of soybean in various states this year, actual procurement has barely exceeded 5 lakh tonnes.
The peak season for soybean arrivals is from October to December, which is when timely interventions would be most critical to help farmers.