“Soyabean and groundnut prices may fall to MSP levels by Diwali”

Under the strain of arrivals, soyabean and groundnut prices may decrease to the MSP (minimum support price) levels set by the Center by Diwali, according to Ajay Jhunjhunwala, President of Solvent Extractors’ Association of India (SEA).
The circumstance, according to Jhunjhunwala in his letter to the SEA members, will have a negative effect on farmers and deter them from cultivating oilseeds in the future.

He claimed that during the previous five months, the price of edible oil had fallen precipitously internationally, which has relieved consumers during the present festival season. The Government, industry, and farmers are concerned about the significant price decline that resulted in a dip in domestic oilseed prices close to the MSP, he claimed.

The price at agriculture produce marketing committee (APMC) yards, which is now quoted at $4,900 per quintal versus the MSP of $4,350, is trending downward due to the anticipated big soyabean harvest of 120 lakh tonnes (lt) and roughly 15 lt of carrying forward stock, he said. Harvest is well underway and the peanut crop is looking well. In contrast to the MSP of 5,850, the APMC yard price is 6,200 per quintal. He emphasized the need to repeal the “Storage Control Order,” claiming that it is useless and instead hinders purchases by large corporations and dealers who directly support market price.

In the meanwhile, he stated that the Government should defend the MSP by adopting necessary actions, such as an increase in import duty, in response to the 400 MSP rise in mustard seed to 5,450 per quintal. In order to increase production, SEA and Solidaridad developed more than 500 model mustard farms in Rajasthan and Madhya Pradesh last year.

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