NEW DELHI: The Indian government announced it will buy soybeans from farmers in Madhya Pradesh at state-set support prices to assist growers affected by a sharp drop in domestic soybean rates, according to a statement released on Wednesday.
Soybeans are crucial for producing soyoil, which helps reduce India’s reliance on imported edible oils. The by-product, soymeal, is used for animal feed and is exported to markets in Southeast Asia and the Middle East.
Farmers typically plant soybeans during the monsoon season in June and July, with the harvest beginning in October. However, the current prices have fallen well below the government-mandated support price of 4,892 rupees ($58.27) per 100 kg, causing widespread frustration among farmers.
Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan accepted a request from Madhya Pradesh to buy soybeans at the support price, following a similar initiative in Maharashtra. Combined, Maharashtra and Madhya Pradesh produce nearly 70% of India’s soybean output. The government also plans to extend the soybean purchasing scheme to the southern state of Karnataka.
With millions of farmers being a significant voting bloc in India, the government’s efforts to support the agricultural sector come ahead of key state assembly elections. Political analysts suggest this is part of a strategy to win back support from rural constituencies, especially after the ruling Bharatiya Janata Party (BJP) suffered losses in this year’s general election.
