High soyabean seed cost follows last year’s low crop

Nagpur: Relieved from increased fertilizer prices after government hiked subsidy a day ago, farmers in Vidarbha are now dogged by higher soyabean seed prices. Soyabean is the second major crop of the region after cotton, but cultivators have only reaped poor returns in it over the years.
Last year was rather ironical for the growers. The soyabean yield dipped to less than half as some farmers also reported to have reaped nothing. Soyabean was sold at Rs3,500 to Rs4,500 a quintal on an average. As against this, traders who bought it from farmers are now selling it at a record high of Rs7,500 a quintal to solvent extraction firms where soyabean is used as a raw material.
This has prompted farmers to increase the area under soyabean for the coming kharif season. The rates of seeds have nearly doubled this year. A 30kg packet of soyabean seeds that was sold for Rs2,200 is now available at Rs3,000 to Rs3,500. In some of the brands, it has gone up to Rs4,000 too, said sources. Farmers say despite the high prices, seeds are not available in a number of pockets.
Sharad Chandak, seed trader in Nagpur and president of Nagpur Agro Dealers Association, said a 30kg bag of soyabean seeds that was available for Rs2,200 now costs Rs3,300-Rs3,500. One acre needs one bag. There are farmers who take as much as 25 bags too. The rates have gone up because of shortage due to the demand and poor crop last year. Production of seeds was hit due to unseasonal rains damaging the crop.
Vallabh Deshmukh, director of Mahabeej — a state government undertaking producing seeds — said the corporation had decided not to change the rates. It has maintained last year’s price of around Rs2,200 for a 30kg bag. “However, a number of private companies have increased the rates to at least Rs3,300 bag. Some brands are selling for Rs4,000 a bag,” claimed Deshmukh.
Even as the prices of seeds have gone up, farmers who provide the basic stock to seed companies did not get any enhanced rate, he added.
“There should be a law on controlling the seed prices and also providing fair remuneration to farmers who supply the stock,” said Deshmukh.
There may be a shortage due to last year’s low output, but it is also hyped, he said. Farmers in Yavatmal contacted by TOI said seeds are not easily available.
Mahabeej’s seeds are cheap, but the supply is rather low, said traders.
IFFCO cuts rates, others to follow
Companies have rolled back fertilizer rates after government hiked the subsidy. IFFCO has already issued revised rates and the rest are expected to come up with new prices by Monday.
DAP that had gone up to Rs1,900 a bag is now back to Rs1,200, said Sharad Chandak from Nagpur Agro Dealers’ Association.