Amid a rise in prices abroad, the prices of almost all oilseeds increased in the domestic market on Friday. Despite this rise, crops like groundnut, soybean, and sunflower are being sold below the Minimum Support Price (MSP) in the spot market. The Malaysia Exchange closed with a gain at 3:30 pm, while the Chicago Exchange also saw a rise of 1.75 percent on Thursday night, and the strength is continuing. Market sources stated that importers are still selling imported soybean degum oil at prices 4-5 percent below the cost of import due to financial difficulties.
Soybean’s MSP is Rs 4,892 per Quintal
Soybean’s Minimum Support Price (MSP) is Rs 4,892 per quintal, but its spot market price is 15-18% lower, around Rs 4,000 per quintal. Sunflower is being sold nearly 20% below MSP, while groundnut is priced 22-23% lower than MSP. However, the situation is better for mustard, as its trading follows market demand and supply trends. Sources said that in the last three days, the Cotton Corporation of India (CCI) has increased the price of cottonseed by Rs 225.
Despite the strength in spot prices, the price of cottonseed cake fell by about 0.5% on Thursday and nearly 1% today in futures trading. However, CCI is now purchasing cottonseed at a fair price without getting influenced by futures trading and has not reduced its price, as cottonseed prices remain strong in Haryana and Punjab. Sources also pointed out that when the spot market is strong due to low production, those trying to manipulate futures prices should be identified. It should also be investigated whether any officials from oil organizations are involved in such activities. In most cases, only a few individuals seem to advocate for futures trading.
What is the Minimum Support Price (MSP)?
The Minimum Support Price (MSP) is the price set by the government to buy crops from farmers. It ensures that farmers do not face losses due to market price fluctuations. MSP was first introduced in 1966-67 as part of India’s agricultural reforms after food shortages.
Oilseeds Prices (Per Quintal):
- Mustard oilseeds – Rs 6,125-6,225
- Groundnuts – Rs 5,425-5,750
- Groundnut oil mill delivery (Gujarat) – Rs 14,200
- Groundnut refined oil – Rs 2,165-2,465 per tin
- Mustard oil (Dadri) – Rs 13,350
- Mustard Pakki Ghani – Rs 2,295-2,395 per tin
- Mustard Kachchi Ghani – Rs 2,295-2,420 per tin
- Sesame oil mill delivery – Rs 18,900-21,000
- Soybean oil mill delivery (Delhi) – Rs 14,000
- Soybean mill delivery (Indore) – Rs 13,650
- Soybean oil degum (Kandla) – Rs 10,000
- CPO ex-Kandla – Rs 13,000
- Binola mill delivery (Haryana) – Rs 13,000
- Palmolein RBD (Delhi) – Rs 14,700
- Palmolein ex-Kandla – Rs 13,600 (without GST)
- Soybean grain – Rs 4,275-4,325
- Soybean lose – Rs 3,975-4,075