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Poll-bound Maharashtra lags behind, while Congress-ruled Telangana races ahead in soybean procurement

Soybean prices have collapsed in the wake of a bumper crop. Cultivated over 50 lakh hectare in Maharashtra, soybean is now trading at Rs 4,1,00-4,200/quintal as against the MSP of Rs 4,892/quintal

SoyabeanCultivated over 50 lakh hectare in Maharashtra, soybean is now trading at Rs 4,1,00-4,200/quintal as against the MSP of Rs 4,892/quintal. (File Photo)

At a time when the low rates for soybean in mandis (wholesale markets) have become a major political issue in Maharashtra ahead of the Assembly elections – particularly in Marathwada and Vidarbha – government procurement of the oilseed at the officially declared minimum support price (MSP) remains abysmally low.

Soybean prices have collapsed in the wake of a bumper crop. Cultivated over 50 lakh hectare in Maharashtra, soybean is now trading at Rs 4,1,00-4,200/quintal as against the MSP of Rs 4,892/quintal. A glut in the international market has also resulted in low prices.

Government agencies had bought a mere 3,887.94 tonnes of soybean in Maharashtra till November 12. This was against the procurement target of 13.08 lakh tonnes set for the current season. Procurement of soybeans started on October 15 and is expected to go on till January 12 next year.

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On the other hand, neighbouring Telangana has procured 24,253 tonnes of the oilseed since September 15 as against its target of 59,508 tonnes.

Madhya Pradesh, the largest soybean grower in the country, has procured 9,971.94 tonnes of its 13.68 lakh-tonnes target. Procurement in this BJP-ruled state started on October 21. However, despite starting late Madhya Pradesh has raced ahead of Maharashtra in terms of the quantum of soybean procured.

Notably, Maharashtra has over 40 state-level agencies (SLAs) – the highest for a state – that act as sub-agents of the Centre for procurement of crops. But the higher SLA numbers have not helped the state in terms of soybean procurement.

Senior government officials said one reason for the low procurement could be the higher-than-allowed moisture level in the oilseed.

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“At present, the oilseed has over 15 per cent moisture, which does not adhere to the government’s Fair and Average Quality (FAQ) of 12 per cent moisture. High moisture content would result in the oilseed molting and thus we can’t procure from the farmers,” added an official. Private traders have drying sheds that allow them to buy oilseed with higher moisture content but obviously at a lower price.

The 288-member Maharashtra Assembly will go to the polls on November 20, and the counting of votes will be held on November 23.


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