Commodity Tips - Soybean rates spike in Madhya Pradesh, Maharashtra
The sharp rise comes weeks after MP's price deficit scheme closed in December
Soybean rates in Madhya Pradesh and Maharashtra have risen sharply since January 1 over rumors of output being lower than expected. This could affect a big section of farmers because 70-80 percent of the crop has already been sold, sources said.
The price spike comes weeks after the sale window of the Madhya Pradesh government’s much-published Bhavaantar Bhugtan Yojana closed in December. This has sparked speculation that traders who used the scheme to their benefit are now pushing up prices to clear inventories.
Data sourced from various agencies show that soybean rates in mandis in Madhya Pradesh have risen by 14-25 percent since January 1 and in mandis in Maharashtra by 30-35 percent. Soybean rates in Madhya Pradesh and Maharashtra had barely moved during the same period last year.
Mandi arrivals have dropped since January 1, but the fall has not been acute enough for such a sharp rise in prices.
Sources said the market was agog with rumors that government might lower its crop estimate significantly. “Stockists who have brought soybean from unregistered farmers during the Bhavaantar Bhugtan Yojana are contributing to this price speculation,” a source said.
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