Soyabean prices at record high, but after most farmers emptied stock

Nagpur: Soyabean prices are at an all-time high. The average rate is Rs9,500 a quintal, which is more than double the minimum support price (MSP) for the crop. The MSP is at over Rs3,900.
Even as the prices have also touched Rs10,000 in some markets of the country, there is not much to gain, say farmers in Vidarbha. Soyabean is the second major crop of the region.
Initially, total yield was estimated at 135 lakh quintals in 2020 Kharif season. The actual production was down by around 35 lakh quintals. This led to the increase in prices, finally touching Rs9,500 to Rs10,000 a quintal in the wholesale markets. There are questions if this has benefited the farmers too.
Traders said that there has been a gradual increase in the prices. There was a major jump from May but by that time most of the farmers had cleared the stock.
Traders said by the time prices reached a record high it was too late majority of the region’s farmers. However, farmers and traders also say that there is a section of growers who have held on to the produce and are now booking profits.
Sudhir Kothari, a director in an agriculture produce marketing committee (APMC) in Hinganghat, said majority of the farmers in the area sold soyabean when the prices were in the range of Rs4000 to Rs5,100 a quintal. “The real profit was made by the traders,” he said.
In Hinganghat, Kothari said, farmers are still bringing some stock, but that’s minimal. The AMPC yard at Hinganghat is getting around 400 sacks a day, which is not much.
In Kalamna APMC yard, which is dubbed as Asia’s biggest in terms of area, the soyabean supply was reported to be much lower. Atul Senad of the Dhanya Bazar said that not more than 100 bags of soyabean have reached the market. “This means that the farmers are not left with much stock,” he said.
Vallabh Deshmukh, a director in Mahabeej, a state government corporation producing seeds, said that there are farmers who are left with a small portion of the produce. It may be around 2 to 4 bags.
“The forward rates of soyabean are over Rs6,400 for November 2021. This means there is a scope for getting better rates in the coming harvest too. Farmers should take utmost care of the crop so that they get better yield and can take advantage of the prices in coming season,” he said.
Anup Chavan, a farmer from Bod Bodhan village in Yavatmal, said that he sold soyabean for only Rs3,000 a quintal. Another farmer said there was no stock left with him
Lalit Mahalle from Akola and a member of Shetkari Sanghathana said that it’s wrong to say that only traders have benefited. “Farmers also understand market dynamics and plan accordingly. They still have soyabean left with them in our area,” he said.
If individual farmers may have not benefited, there are some farmer producers organizations (FPOs) that have been able to capitalize on the boom, said a commodity market expert.