Indian farmers are likely to choose to grow maize instead of oilseeds like soyabean and groundnuts due to falling prices, a shift that could keep the country reliant on edible oil imports, reported The Economic Times.
India, which imports around 60% of its cooking oil needs, saw a record rise in pulses imports in 2024. The country imported 6.63 million tonnes of pulses this year, double the amount from 2023.
A government official expressed concern saying, “We fear that farmers will replace soyabean and tur with maize as they have not been getting proper prices for their oilseed produce. The government’s promise to procure 100% of pulses produce is likely to encourage farmers to opt for tur.”
The government has set a minimum support price (MSP) of Rs 4,892 per quintal for soyabean, but since the marketing year began in October 2024, market prices have remained 10% to 20% below this level.
Atul Chaturvedi, executive chairman of the Asian Palm Oil Alliance, noted, “Despite cooking oil prices being relatively higher than last year, soyabean prices have ruled below the MSP because of low realisation from the soyabean meal. Starting procurement early can help the farmers realise the minimum support price, encouraging them to opt for the oilseed.”
“And the realisations from soyabean meal are low as the prices of DDGS (distillers dried grain soluble), a byproduct of crushed maize, has suppressed the prices of soyabean meal got from soyabean crushing, he further added.
In response, Agriculture Minister Shivraj Singh Chouhan has been meeting farmers in major growing states, Madhya Pradesh, Rajasthan, and Maharashtra, to assure them of support in boosting crop productivity.
