The Ministry of Agriculture has recently issued an important order that is expected to benefit a larger number of farmers. This decision brings relief to farmers who have been troubled by falling soybean prices. The central government has decided to buy soybeans at the Minimum Support Price (MSP) while also offering a relaxation in moisture content. Now, farmers will be able to sell soybeans with up to 15% moisture at MSP, whereas earlier, only soybeans with a moisture content of up to 12% were eligible. This relaxation will particularly help farmers who could not sell their crops due to high moisture content, enabling more farmers to sell their produce at MSP.
According to the new system, the government has clarified that any additional costs or losses incurred due to the higher moisture content in soybeans will be covered by the respective state governments. Central nodal agencies such as NAFED and NCDC will make payments to state-level procurement agencies based on the new standards. This ensures that farmers will receive the full MSP for their crops, regardless of the moisture content.
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The central government sets the Minimum Support Price (MSP) for crops before the commencement of each rabi and kharif season. For the 2024 kharif marketing season, the MSP for soybean has been fixed at ₹4892 per quintal. This rate will be applicable across the country for purchasing soybeans from farmers.
Current Market Prices: Maharashtra and Madhya Pradesh are the leading states in soybean production in India. In these states, the market prices of soybean are significantly lower than the MSP fixed by the government. For instance:
Soybean Procurement at MSP: As per government procurement data, Madhya Pradesh has procured a higher quantity of soybeans compared to Maharashtra. By November 12, Maharashtra had purchased 3,887.94 tons of soybeans at MSP, while Madhya Pradesh had procured 9,971.94 tons. This indicates that the procurement of soybeans is relatively higher in Madhya Pradesh.
Reasons for Lower Procurement in Maharashtra: A senior government official cited that the main reason for the lower soybean procurement in Maharashtra is the high moisture content, which exceeds 15%. Government standards do not permit the procurement of soybeans with such high moisture levels, as it increases the risk of spoilage. Private traders can buy soybeans with higher moisture content, but they do so at lower prices. With the government's new allowance to procure soybeans with up to 15% moisture, it will be interesting to observe whether procurement speeds up in Maharashtra.
This new policy has sparked hope among soybean farmers, as it addresses the financial challenges caused by high moisture content in their crops. With this decision, more farmers can now benefit from the MSP scheme, leading to better financial security and stability for the soybean farming community.
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