Soybean Prices Plummet Across Indian States, Farmers Face Mounting Pressure
27 August 2024, New Delhi: Soybean prices across several Indian states have witnessed a significant decline in August 2024, raising concerns among farmers and market stakeholders. The latest figures indicate a sharp drop in wholesale prices compared to both the previous month and the same period last year, signaling a broader crisis in the agricultural sector.
According to data from various states, the average price of soybean in August 2024 fell to ₹4,793 per quintal, down from ₹5,118 in July 2024 and ₹5,021 in August 2023. This represents a monthly decline of 6.35% and a year-on-year drop of 4.54%. The steepest declines were observed in states like Andhra Pradesh and Telangana, where prices fell by nearly 30% and 7% respectively compared to the previous year.
In Madhya Pradesh, one of the largest soybean-producing states in India, the decline in prices has been particularly concerning for farmers and market participants. In August 2024, the wholesale price of soybean in the state fell to ₹4,196 per quintal, a 3.25% decrease from ₹4,337 in July 2024. The year-on-year figures paint an even bleaker picture, with prices down by 12.49% compared to ₹4,795 in August 2023. This significant drop is reflective of the broader challenges facing the soybean market in Madhya Pradesh, where erratic monsoon patterns and supply chain disruptions have contributed to reduced crop yields and an oversupply in the market. As the state is a key contributor to India’s overall soybean production, these price declines are not only impacting the local economy but also influencing national market trends. Farmers in Madhya Pradesh, already grappling with rising input costs, now face the added burden of declining revenues, raising concerns about their financial stability and the overall health of the agricultural sector in the region.
In Andhra Pradesh, soybean prices plummeted to ₹2,923 per quintal in August, a massive 29.89% decrease from ₹4,169 in July 2024. The year-on-year comparison is even more concerning, with prices falling by 30.39% from ₹4,199 in August 2023. Similarly, in Telangana, prices dropped by 6.71% month-on-month, bringing the price down to ₹4,211 per quintal, compared to ₹4,514 in July 2024.
Other major soybean-producing states also reported notable declines. In Maharashtra, the price of soybean dropped by 1.74% in August, settling at ₹4,190 per quintal. Although the monthly decrease was relatively modest, the year-on-year decline of 11.23% highlights the ongoing struggles in the market. Karnataka and Rajasthan reported monthly price drops of 4.54% and 4.59% respectively, with year-on-year decreases exceeding 12%.
The price decline has been attributed to several factors, including global market trends, inconsistent monsoon patterns, and supply chain disruptions. Analysts suggest that the global soybean market’s fluctuations have significantly impacted domestic prices. Additionally, erratic monsoon rains have affected crop yields, leading to supply inconsistencies and further influencing market dynamics.
Furthermore, ongoing disruptions in the agricultural supply chain, including transportation challenges and labor shortages, have compounded the situation, exacerbating the demand-supply imbalance in the domestic market. The resulting oversupply in some regions has pushed prices down, putting further strain on farmers’ earnings.
For farmers, particularly small and marginal ones, the falling prices have come as a significant blow. The decline in earnings from soybean sales, coupled with rising input costs, threatens their financial stability. Many are now facing the prospect of reduced incomes, which could lead to increased debt burdens and economic hardship.
As the soybean harvest season continues, industry experts are calling for immediate intervention at both policy and market levels to stabilize prices. There is an urgent need for measures that ensure fair compensation for farmers and mitigate the impacts of the current market downturn.
The coming months will be critical in determining whether this downward trend in soybean prices will persist. The situation remains fluid, with market observers closely monitoring price trends and potential policy responses as India navigates this challenging period in its agricultural sector.
| State | Prices August, 2024 | Prices July, 2024 | Prices August, 2023 | % Change(Over Previous Month) | % Change(Over Previous Year) |
| Andhra Pradesh | 2923 | 4169 | 4199 | -29.89 | -30.39 |
| Chattisgarh | 4036 | 4176 | 4652 | -3.35 | -13.24 |
| Gujarat | 4027 | 4185 | 4672 | -3.78 | -13.81 |
| Karnataka | 4228 | 4429 | 4805 | -4.54 | -12.01 |
| Madhya Pradesh | 4196 | 4337 | 4795 | -3.25 | -12.49 |
| Maharashtra | 4190 | 4264 | 4720 | -1.74 | -11.23 |
| Manipur | 8750 | 8750 | 9416 | 0 | -7.07 |
| Rajasthan | 4112 | 4310 | 4720 | -4.59 | -12.88 |
| Tamil Nadu | 8911 | 9000 | -0.99 | __ | |
| Telangana | 4211 | 4514 | 4852 | -6.71 | -13.21 |
| Uttar Pradesh | 4025 | 4167 | 4449 | -3.41 | -9.53 |
| Uttrakhand | 3909 | 3955 | __ | -1.16 | |
| Average | 4793.17 | 5118.27 | 5021.36 |
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