Source: Business Standard
Soybean’s minimum support price was increased 30% in 2012-13 to encourage domestic production. Globally, the oilseed saw high inflation, with low supplies from the two main producers, Brazil and Argentina. The all-India average wholesale price for a quintal of soybean oil soared to a record Rs.8,138.4 in September. However, prices have softened since as crop estimates improved and the 3rd Advance Estimates for 2012-13 set production at 14.44 million tonnes, the highest so far, due to increasing acreage. A kharif crop, soybean’s sowing is expected to be five-seven per cent higher than last year’s, as farmers in Madhya Pradesh and Maharashtra, the top producers, are responding to better price realisation. With seven years of high prices, production has been increasing globally and this year the US Department of Agriculture has estimated a record crop worldwide, leading to downward pressure on prices in the year ahead.
IPM data till week ending June 15. Indicus Price Monitor, a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from about 3,000 mandis. Due to differences in methodology, the IPM levels differ from the corresponding Wholesale Price Index. But, broad trends are in sync.