Elections and issues: As soyabean prices drop, will procurement of this key cash crop help Mahayuti in Maharashtra?

As Maharashtra prepares for the upcoming Assembly elections, the Eknath Shinde-led Mahayuti alliance must address the lower-than-expected prices of soyabean, a key cash crop in the state. This situation could lead to increased discontent among farmers. To alleviate these concerns, the central government announced a procurement initiative based on the minimum support price (MSP) of Rs 4,892 per quintal on September 11.

Over a month has passed since the announcement, yet farmers like Dake have not seen any benefits. With elections approaching in less than a month, many worry that farmers will struggle to sell their produce at government procurement centres.

The state marketing department has established the appointment of state-level agencies (SLAs) to act as sub-agents of the National Cooperative Agricultural Federation (NAFED) for the direct procurement of soyabeans from markets. However, the procurement process has not yet begun. Ramesh Patil, a farmer from Chakur taluka in Latur district, expressed concern that even when procurement starts, most farmers will not be able to benefit from it.

“At present, the moisture content of the freshly harvested soyabean is way more than the allowed 10 per cent. Thus, even if they wanted, they would not qualify for the scheme,” he said.

A price (Rs/qunital) is to date graph showing the average rates of soyabean crop.

Once farmers sell their produce, the payment is credited directly into their bank accounts. “Ideally it should happen within 15 days but it takes longer,” said Patil.

With Diwali approaching, many farmers in need of quick cash have started selling their produce at the mandi instead of waiting for government procurement to gain traction. The average arrival at Latur’s wholesale market is around 2,000 to 2,500 tonnes per day and is expected to increase.

The average traded price is around Rs 4,200-4,250 per quintal, which is significantly lower than the MSP. Naresh Goenka, vice president of the Indore-based Soyabean Processors Association (SOPA), explained that the lower prices compared to the MSP are due to the excess availability of the oilseed in international markets.

Brazil has reported a bumper crop this season. However, exports of soyameal— the protein-rich solid left after oil is extracted from soyabeans— from India are facing unexpected challenges due to ongoing political turmoil in Bangladesh and Iran. This situation has disrupted smooth exports from India. Goenka believes that the current price range will persist until government procurement activities begin to pick up. While he noted that the moisture content may decrease in the next ten days, he expressed little hope for significant price changes.