India Faces Rising Soybean Procurement Burden, SOPA Suggests Direct Farmer Price Support
06 September 2025, New Delhi: The Soybean Processors Association of India (SOPA) has written to Union Agriculture Minister Shivraj Singh Chouhan, raising serious concerns over the mounting losses incurred through large-scale soybean procurement under the Price Support Scheme (PSS).
In a letter dated September 3, 2025, SOPA Chairman Dr. Davish Jain highlighted that throughout the ongoing marketing year (October 2024 – September 2025), mandi prices of soybean have consistently remained below the Minimum Support Price (MSP) of ₹4,892 per quintal. This has largely been attributed to depressed international and domestic prices of soybean oil and meal.
To safeguard farmers, the government procured around 20 lakh tonnes of soybean under PSS. However, SOPA pointed out that the cost of procurement has escalated significantly when administrative charges, logistics, wastage, moisture loss, and commission fees are factored in. According to the association, the subsequent auction of these stocks by NAFED and NCCF in the open market is taking place at an average discount of nearly ₹10,000 per tonne, leading to estimated government losses of around ₹2,000 crore.
The challenge is expected to intensify in the new marketing year, as MSP for soybean has been further increased to ₹5,328 per quintal. At the same time, low oil and meal prices persist due to reduced import duties and substitution of soybean meal with cheaper alternatives like DDGS (Distillers Dried Grains with Solubles). “Under similar market conditions, procurement requirements may double, pushing the fiscal burden well above ₹5,000 crore,” SOPA cautioned.
As a solution, SOPA has strongly recommended replacing large-scale procurement with the Bhavantar Bhugtan Yojana. The scheme, which compensates farmers for the gap between market price and MSP, would allow direct transfer of relief to cultivators while cutting government expenditure by nearly half.
“Bhavantar ensures that genuine farmers receive timely compensation without the heavy costs associated with procurement, storage, and resale,” Dr. Jain said in the letter. He also emphasized that the scheme could be implemented with robust verification systems to prevent misuse and ensure benefits reach only eligible farmers.
SOPA has requested a personal meeting with the Union Agriculture Minister to discuss the matter further, underlining the urgent need for policy intervention before the new marketing season gathers pace.
Also Read: India Slashes GST on Tractors and Agri-Inputs to Boost Farm Economy
📢 If You’re in Agriculture, Make Sure the Right People Hear Your Story.
From product launches to strategic announcements, Global Agriculture offers unmatched visibility across international agri-business markets. Connect with us at pr@global-agriculture.com to explore editorial and advertising opportunities that reach the right audience, worldwide.
