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Soyabean procurement under the Price Support Scheme (PSS) has been significantly low, reaching only 2.6% of the 32.24 lakh tonnes (lt) approved by the Centre as of November 18. Despite a relaxation in the moisture content norm, the procurement process has been slow, with states like Telangana leading while others like Maharashtra and Karnataka report minimal purchases. The Centre’s decision to allow up to 15% moisture is seen as a step to support farmers, but the benefits are limited due to late implementation. Market prices remain lower than the Minimum Support Price (MSP), affecting farmers' returns.

Key Highlights

# Procurement under PSS at only 2.6% of approved quantity.

# Telangana leads with 55% procurement, others lag behind.

# Moisture content norm relaxed to 15% for 2024-25 season.

# Mandi prices below MSP; Maharashtra reports ?4,086/quintal.

# Low procurement may continue till February 2025 in some states.

Soyabean procurement under the Price Support Scheme (PSS) has been sluggish, reaching just 2.6% of the approved 32.24 lakh tonnes by November 18. Telangana stands out with 55% of its approved quantity already procured, while other states, especially Maharashtra and Karnataka, report poor numbers. Karnataka's procurement is as low as 636 tonnes against its 1.03 lakh tonnes approval, while Maharashtra has only managed 13,402 tonnes out of the 13.08 lakh tonnes allocated. The average mandi price of soyabean is ?4,152/quintal, still lower than the Minimum Support Price (MSP) of ?4,892/quintal.

The relaxation in moisture norms from 12% to 15%, announced in November, aims to facilitate procurement amid lower moisture levels in the crop, which now stands at around 12%. This move, however, comes too late in the season, leaving little time for farmers to benefit fully. Traders note that private buyers consider moisture levels of up to 10% for lower pricing, leading to further challenges for farmers. Despite the relaxation, procurement rates remain slow, and farmers are getting a lower return than expected.

The government has estimated a production of 133.6 lakh tonnes of soyabean this year, but industry experts suggest a lower output of around 125.82 lakh tonnes. The ongoing procurement process, coupled with the delay in policy decisions, could impact the overall recovery of the sector.

Finally

With procurement numbers lagging behind targets, farmers face a tough season despite the relaxation in moisture norms. The slow pace of procurement could affect market dynamics through February 2025.

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