INDIA -The Indian government has announced that it will buy oilseed from farmers in the central state of Madhya Pradesh at the state-set minimum support price (MSP) in a move to support farmers reeling from a crash in domestic soybean prices.
The decision relieves growers, as soybean prices have dropped well below the government-mandated MSP of 4,892 rupees (US$58.27) per 100 kg, angering farmers.
The government decided to purchase soybeans at MSP after Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan accepted a request from Madhya Pradesh, the country’s largest soybean producer.
Earlier, the government had also agreed to buy soybeans from growers in the western state of Maharashtra, which, together with Madhya Pradesh, accounts for nearly 70% of India’s total soybean output.
India uses soybeans to manufacture soyoil, which helps reduce its hefty edible oil imports. The by-product soymeal is used for animal feed and exported mainly to Southeast Asia and the Middle East.
Farmers typically plant soybeans in June and July during the monsoon season and harvest the main summer oilseed crop in October.
The move to support soybean farmers comes at a crucial time, as the government seeks to placate the influential voting bloc ahead of state assembly elections in Haryana and Maharashtra.
Millions of farmers are seen as a key voting bloc in India, the world’s leading producer of rice, wheat, cane, and cotton.
The government’s decision to buy soybeans at MSP is also seen as a response to the anger fueled by a spate of export curbs imposed by Prime Minister Narendra Modi’s government, which has already caused discontent among farmers.
After the Bharatiya Janata Party suffered losses in rural constituencies in this year’s general election, the government is keen to address farmers’ concerns.
Soybean procurement in Madhya Pradesh will begin on October 25 and continue until December 31, 2024.
Farmers must register by October 15, and the state government will open centres across the state to facilitate the purchase of soybeans at the MSP rate of Rs 4,892 (US$58.31) per quintal.
Despite the government’s efforts, farmer organisations in Madhya Pradesh have reiterated their demand that the government buy the oilseed crop at Rs 6,000 (US$71.52) per quintal, higher than the current MSP.
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