Soybean prices are below the government-set minimum support price (MSP) of Rs 4,892/quintal (MSP), seven weeks after India increased import duties on edible oils. The mandi price currently varies between Rs 4,500 and Rs 4,700 per quintal due to high moisture due to pre-harvest rains. Excess and low demand has kept prices from hitting the MSP, especially in the face of higher import duties and higher soybean production forecasts to boost domestic production.
Despite the government’s efforts to raise market prices by increasing import duties on edible oils, soybean prices in Indian mandis have remained below the minimum support price (MSP) of Rs 4,892 per quintal. Currently, the average mandi price is between Rs 4,500 and Rs 4,700 per quintal. Government agencies have bought about 26,442 tonnes of soybeans from farmers in six major producing states in the last seven weeks through price support schemes. And these will keep market prices steady during the expected surge in arrivals in October-December.
It raised the import duty on crude and refined cooking oils by 22% to support the price hike to discourage cheap imports and encourage domestic oilseed production. India currently imports about 16.5 million tonnes of cooking oil per year, with production projected to rise and import dependence to decline.
