The Soybean Crisis in Madhya Pradesh: MSP Failures, Import Threats, and Farmer Distress
UPSC Relevance
Prelims: Indian Economy (Agriculture - Minimum Support Price (MSP), Procurement, Cropping Patterns, Import/Export Policy, Edible Oils, Bhavantar Bhugtan Yojana), Key Institutions (ICAR, SOPA).
Mains:
General Studies Paper 3 (Economy - Agriculture): Issues related to direct and indirect farm subsidies and minimum support prices (MSP); Cropping patterns in various parts of the country; Food processing and related industries in India—scope and significance; Impact of liberalization on the economy (trade policies).
Key Highlights from the News
Soybean farmers in Madhya Pradesh (India's largest soybean producer) are facing a severe crisis.
Main reasons: climate change, low yield, attacks by animals like nilgai, and substandard seeds.
Farmers are not receiving the Minimum Support Price (MSP) announced by the government. Farmers are forced to sell their produce in the market for about half of the MSP.
Farmers allege that the government's import-export policies are the main problem.
There is concern that the move to import soybeans from the U.S. at a much lower price than India's ($380/tonne vs Indian $620/tonne) will destroy domestic farmers and the soybean processing industry.
Farmers say that the government's Bhavantar Bhugtan Yojana (price difference payment scheme) is not transparent and ineffective.
SOPA (Soybean Processors Association) points out that in India, soybean is a "protein crop" rather than just an oilseed. It is crucial for India's protein needs.
Farmers who previously cultivated millets switched to soybeans due to government encouragement. It is ironic that now the price of millets has increased and the price of soybeans has decreased.
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