India: Except for pulses, market prices of most agricultural food items above new minimum support prices

Soybean

Peanut Kernel

India

Published Jun 14, 2022

Tridge summary

Mandi prices of several agricultural commodities for which the government has just announced a 5-9% increase in minimum support prices (MSPs) for the 2022-23 season are currently ruling above the MSP. Only the prices of pulses have been subdued, ruling below the benchmark price. Mandi prices of oilseeds, especially soyabean, whose MSP was hiked 9% to Rs 4,300 a quintal for the next crop season is currently ruling 50% above the MSP at Rs 6,500 a quintal in Indore — a trade hub for oilseeds.

Original content

According to the Soyabean Processors Association of India, at the start of the 2022-23 season commencing on October 1, the soyabean prices are expected to be around Rs 5,500 to Rs 6,000 a quintal. The robust domestic demand for edible oil and soyebean meal, used as poultry feed has pushed up prices above MSP. The market prices of groundnut oil at present are ruling around Rs 6,090 a quintal in Gujarat which is around 4% above the MSP of Rs 5,850 a quintal for the coming season. Currently, India produces about 45% of domestic edible oil consumption. Soybean and groundnut have a share of 24% and 7% respectively in domestic production. India imports about 55-56% of its total domestic requirement of edible oil, while 15% of pulses consumption is met through imports. In the case of rice, mandi prices are ruling around 4% above prices derived from the MSP of paddy announced for the Kharif 2022-23 season. While benchmark prices for tur, moong and urad has been increased by 4.8%, 6.6% and ...

Source: Indoasiancommodities