Vilas Uphade’s soyabean crop, spread over 4 acres at the Takli village in the Latur district of Maharashtra, is healthy and in the advanced stage of pod formation. However, Uphade is concerned not about the unpredictable monsoon, but rather about the drop in prices of his crop.
As the June-September monsoon season comes to a close, farmers like Uphade are concerned that they will face challenges with pricing again this year. “The new crop is expected to hit the markets in about 45 days, but at Latur’s wholesale market prices are between Rs 4,600-4,650/quintal as against its Minimum Support Price (MSP) of Rs 5,328. There is going to be a bloodbath once the new crop comes,” he said.
If Uphade is worried about his soyabean crop, Manikrao Kadam in the neighbouring Parbhani district is concerned about both cotton and tur (pigeon pea). “Rains have been satisfactory and the crop condition is good, but we are worried about prices,” he said.
Kadam said farmers in Parbhani primarily grow cotton, soyabean, and tur as their main kharif crops, with prices being the main topic of discussion at the moment. “Though heavy rains caused flooding in Nanded and Hingoli a few weeks ago, the crop condition is good overall.”
Soyabeans are currently in the pod formation stage, while both cotton and tur are in their flowering and pod formation stages. Farmers expect to harvest their soyabeans within the next 45 days. Cotton harvesting will begin after September, and tur harvesting and marketing are scheduled for the end of this year.
However, for growers of the three kharif crops, prices below the MSP have become a concern. Grown over 119.51 lakh hectares this year, soyabean is trading below its MSP even before the start of the marketing year.
Similar are the cases with cotton (108.47 lakh hectares sown area) and tur (43.98 lakh hectares). At Latur’s wholesale market, tur is trading at Rs 6,600/quintal against its MSP of Rs 8,000. The cotton lint crop is trading at Rs 7,200/quintal against its MSP of 7,521.
Factors affecting prices
The influx of imported tur is driving down prices, while US tariffs are adversely affecting cotton prices.
In the last fiscal year, the country imported 770,000 tonnes of tur. “Imported tur is trading at Rs 4,400/quintal, and this is affecting the prices,” said a trader from Latur.
The purchase of cotton yarn by textile industries has decreased significantly due to the 50 per cent tariff the US imposed on imports from India. Traders say that a better price for cotton is nearly impossible in such a situation.
Soyabean prices are down mainly due to the slack in exports of protein-rich soyameal, the solid residue left after oil is extracted from the bean. Traders across the country said the chances of any price rise appear slim.
Farmers are now hopeful for government intervention to increase procurement and ensure they receive the MSP.
