“Soy State Crisis in Madhya Pradesh”

• Madhya Pradesh, India’s largest soybean producer, is experiencing a decline in interest among young farmers due to issues such as improper implementation of minimum support price, seed quality, input cost, and potential import of soybean and soybean meal from the United States.

• Farmers are losing interest in farming due to climate change and the Union Government’s import-export policies.

• The yield of soybeans is low, with yields being two to 2.5 quintals per acre, less than half of what farmers used to get.

• The government’s minimum support price (MSP) has been criticized for not being properly implemented and procurement by the government in local markets.

• Farmers are selling their produce for as low as ₹ 3,000 per quintal in the Chhawani grain market of Indore, despite the government’s promise of half the MSP.

• The Union Government reported a decrease in soybean sowing area by 10.62 lakh hectares during the 2025 kharif season, while soybean alone decreased by 9.1 lakh hectares.

• Farmers are not recovering even the input cost, which is the reason for the decrease in cultivation.

• The Bhavantar Bhugtan Yojana, a price difference payment scheme, is seen as a fraud being played on farmers, with the model price and average price being different.

The Threat of Soybean Imports in India

• Farmers in India are facing losses due to the government’s importation of edible oil, which is causing difficulties in selling soybeans at a decent price.

• The Soybean Processors Association of India (SOPA) has been requesting the government to ensure farmers receive the correct price for their soybeans.

• SOPA Executive Director, D.N. Pathak, believes that a shortage in soybean cultivation will directly impact protein availability, as soybean is not an oilseed crop.

• Pathak warns that the import lobby is floated by vested interests, questioning the reasons for growing soybeans.

• He warns that the government needs to understand the situation and ensure that farmers receive the correct price for their soybeans.

• Pathak also questions the potential impact of importing soybeans from the U.S., as the local soybean is mainly used for oil extraction and soybean meal production.

• Kedar Sirohi, a member of the Samyukt Kisan Morcha (SKM) and president of the Congress party’s farmer cell in Madhya Pradesh, believes that the state’s economy is dependent on soybeans.

• He argues that the current market prices are 35% to 40% less than the MSP, and that farmers lack tools for price mitigation.

• The advent of soybean in the state began in the 1980s, with the current variety, yellow soybean, reaching farms by the first decade of 2000.

Samyukt Kisan Morcha (SKM) and Farmers’ Concerns

• SKM, an umbrella organization of farmers, opposes State and Union Government policies, particularly in the soybean sector.

• The organization has raised issues such as suicides by soybean farmers and the possibility of imports from the U.S. due to lack of transparency in discussions.

• SKM has demanded that the Centre scrap all trade negotiations that impact farmers’ lives.

• The organization has sent a letter to the Centre highlighting that the country has sufficient stocks of soybean meal to meet domestic demand and that allowing imports will have “devastating consequences” for India’s agriculture sector.

• Farmers are concerned about the potential loss of soybean value if cheap soybean is imported from the U.S., leading to losses worth ₹300 crore in the State.

• Farmers are also concerned about the future of soybean, with some farmers keeping soybean for three to four years expecting price improvement as export picks up.

• The Chhawani grain market, one of the biggest soybean markets in India, handles about 2,000 tonnes to 2,500 tonnes of soybean a month.

• The scientific community remains hopeful in soybean and its future, with the Indian Council of Agriculture Research (ICAR)’s Indian Institute of Soybean Research stating that the current decrease in the area of sowing is primarily due to a decline in prices.

• The institute has an incubation center for start-ups that helps entrepreneurs develop soybean-based food products, with a focus on developing products that will be a ‘palate pleaser’ for youngsters.

MP soybean production issues is important topic for Civil service exam (WBCS).

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