Soyabean rates crash in two days, farmers’ hopes shaken

Nagpur: After a poor yield and low returns last year, rates of soyabean the second major crop of Vidarbha had touched a record high of over Rs10,000. Farmers hoped to gain from the trend finally in this kharif season. Now as the harvest season is round the corner their hopes have been shaken.
In mere two days of trading, soyabean prices have crashed to as low as Rs4,000 a quintal as against Rs10,000 to Rs9,000 a quintal.The current price is in the range of Rs4,000 to Rs6,000 as against this the minimum support price (MPS) is at Rs3,950/quintal.
“Less than a week ago the rate were over Rs 10,000 and it suddenly crashed to Rs4,100 to Rs4,400,” in the Kalamana market,” said Atul Senad of the Adatiya (brokers’) Association here. The Adatiyas will be opposing the move as rates have fallen due to government’s decision to import soyameal. A further fall cannot be ruled out.
Farmers had increased area under the crop and the demand took the price of soyabean seeds to nearly double in the sowing season.
The sudden crash in the prices has left the observers surprised.
“There is a general perception that the rates have fallen because of recent decision to allow import of 12 lakh tonne of soyameal which is used as fodder and in poultry industry. However, there is a much higher demand of the commodity. This is a month old decision and the impact was seen in the market at that time itself when prices came below the Rs10,000 level. The sudden fall in two days is surprising indeed” says Anil Ghanawat the president of Shetkari Sanghatana.
This indicates of another likely decision by the government of which a section of traders may have got an inkling, based of which they may have cut purchases bringing down the rates, he said.
The present quality of soyabean arriving in the markets is also inferior as seeds have caught moisture due to rains. This also is a reason for rates coming down, said sources.
“Moisture often hampers the quality and brings down the rates. However, this is a regular feature and import is a main factor for the current crash,” said Sudhir Kothari a director of an agricultural produce marketing committee in Hinghanghat Tehsil of Wardha.
Kishore Tiwari the chairman of Vasantrao Naik Shetkari Swavalamban Mission (VNSSM), said there remains a shortfall in supply of soyabean, yet it appears that the rates have artificially pulled down. In some of the centres soyabean was trading even below the MSP.
Vallabh Deshmukh a director of Mahabeej — the state government seed corporation said the rates are down because of moisture in the grains and also that the consignment of imports have lately reached India. Farmers should not panic and hold on to the stock. There are chances that the prices may improve to around Rs7,000 a quintal by November. However, further rains can hamper the crop.