Falling Soyabean prices hitting farmers hard

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Falling Soyabean prices hitting farmers hard

Due to falling soyabean prices, farmers may shift towards cotton

Arun Pandey

Mumbai | 31 May 2017

With the prices of soybean falling below MSP (Minimum Support Price) and hitting rock bottom, the agri experts are predicting a shift in cropping patterns in the ensuing Kharif season. According to officials of Solvent Extractors Association of India (SEA), “Farmers may shift towards cultivating cotton, castor and groundnut in some states”.

The MSP of soybean has been fixed at Rs 2,775 per quintal with a bonus of Rs 100 per quintal. But according to market sources, “the soybean prices in the local market have fallen below MSP due to higher production at a domestic and international level”.

The SEA official said, “However, shifting towards castor or groundnut will depend on the monsoon. Though castor prices have been high throughout the year but the crop occupies the land occupied for a long period restricting the farmers to just one crop. As North Gujarat is better irrigated, so the farmers in this region may opt for castor and groundnuts”.

The SEA has cut its soybean meal export forecast by 25% due to strengthening of rupee. India may end up exporting only 1.5 million tonnes of soymeal against the expected 2 million tonnes during 2016-17 marketing year that runs from October to September.

Last season, the country cultivated soybean on 110 lakh hectares with total production touching 11.5 million tonnes.