Soyabean prices up about 7% as MP scheme ends tomorrow

Soyabean prices shot up 5-7 per cent over the last fortnight as traders and millers rushed to cover inventories and as the Madhya Pradesh price support scheme comes to an end on Saturday. “Soyabean prices moved up from Rs 3,450 a quintal in the last week of December to Rs 3,700 per quintal today (Thrusday), delivered at the plant gate,” Davish Jain, president of Soyabean Processors’ Association of India (SOPA), said on Thursday.

As Saturday is the last day for the implementation of the Bhavantar Bhugtan Yojana (BBY) of Madhya Pradesh, farmers have started rushing to register their sale in the mandi auction records. This has led to an increase in arrivals as well as prices in Madhya Pradesh. This year, the state government will pay a flat bonus of Rs 500 per quintal to farmers who sell the oilseed on time. After January 19, soyabean will enter a lean phase.

“The factors supporting the price rise include end of the Bhavantar scheme of Madhya Pradesh on January 19, expectations of increase in export of oilmeal to Iran and holding of soyabeans by the trading community,” Jain said.

Though the prices have moved up, small farmers from states like Maharashtra will not benefit after the peak arrival season as they have sold their produce at lower than the minimum support price of Rs 3,390 per quintal.

Soyabean traded firm across major markets in the country with a 1-3 per cent rise on Wednesday.

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