Soybean Prices Slide Below MSP Despite Lower Acreage in Kharif 2025
04 October 2025, New Delhi: Soybean wholesale prices across India weakened in September 2025 compared to last year, despite a higher government-declared minimum support price (MSP) and reduced acreage under the crop this Kharif season. Data reported by Agricultural Produce Market Committees (APMCs) shows that average wholesale prices stood at Rs. 4,617 per quintal in September 2025, compared to Rs. 5,220 per quintal in September 2024, a fall of about 11.6% year-on-year.
Acreage and MSP Context
According to the Ministry of Agriculture, as per the recent report soybean was sown on 10.50 lakh hectares in Kharif 2025, down by 5.15%from 11.07 lakh hectares last year. The Union Cabinet had earlier increased the MSP for soybean to Rs. 5,328 per quintal for 2025-26, up from Rs. 4,892 per quintal in 2024-25, a rise of Rs. 436 or 8.9%.
However, actual wholesale market prices continue to trade well below MSP in most producing states, raising concerns about farmer realizations and highlighting the limited impact of MSP in the absence of robust procurement mechanisms.
State-Wise Price Trends
In September, major producing states such as Madhya Pradesh (Rs. 4,080/qtl), Maharashtra (Rs. 4,170/qtl), Telangana (Rs. 4,182/qtl), and Karnataka (Rs. 4,028/qtl) reported significant declines compared to August, ranging from 7% to 15% month-on-month. Year-on-year, prices in these states were lower by 3% to 7%.
The exception came from Tamil Nadu, where prices jumped sharply from Rs. 4,517 in August to Rs. 8,562 in September, an increase of nearly 90%. Analysts note that this could be an anomaly in reporting or reflect thin trading volumes in local mandis, as the figure diverges sharply from trends in other states.
Excluding Tamil Nadu’s outlier, the national average would show a flatter or slightly declining month-on-month trend, indicating that most producer markets are under pressure.
Soybean Prices: State-wise Wholesale Monthly Analysis (September 2025)
| State | September 2025 (Rs/qtl) | August 2025 (Rs/qtl) | September 2024 (Rs/qtl) | % Change (MoM) | % Change (YoY) |
|---|---|---|---|---|---|
| Andhra Pradesh | 4039 | – | – | – | – |
| Chhattisgarh | 4035 | 4166 | 4198 | -3.14 | -3.88 |
| Gujarat | 4109 | 4347 | 4354 | -5.48 | -5.63 |
| Karnataka | 4028 | 4758 | 4217 | -15.34 | -4.48 |
| Madhya Pradesh | 4080 | 4553 | 4394 | -10.39 | -7.15 |
| Maharashtra | 4170 | 4496 | 4441 | -7.25 | -6.10 |
| Manipur | – | – | 8750 | – | – |
| Rajasthan | 4247 | 4475 | 4366 | -5.09 | -2.73 |
| Tamil Nadu | 8562 | 4517 | 8920 | +89.55 | -4.01 |
| Telangana | 4182 | 4656 | 4305 | -10.18 | -2.86 |
| Uttar Pradesh | 4140 | 4344 | 4256 | -4.70 | -2.73 |
| Uttarakhand | 4000 | – | – | – | – |
| Average | 4617 | 4395.55 | 5220.10 | – | – |
Demand-Supply Dynamics
Economists point out that the price slump, despite lower acreage, points to weak demand in the crushing industry and reduced soybean meal exports, which have been subdued in recent months. Crushers facing tighter margins have been bidding cautiously, leading to subdued farmgate prices.
Heavy rains in late September, especially in parts of Maharashtra, also caused quality deterioration and distress sales, further dragging down market prices.
Policy Response and Outlook
With wholesale prices trailing MSP by nearly Rs. 1,200 per quintal, state governments like Madhya Pradesh are expected to intervene through schemes such as Bhavantar Bhugtan Yojana to compensate farmers for the price gap. Analysts emphasize that procurement intensity and demand recovery will be critical in the coming months.
“Unless procurement at MSP is effectively implemented, the MSP increase will remain notional. Farmers in major producing states are currently realizing much less than the declared floor price,” said an agriculture economist.
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