MP govt slashes soya seed prices

The MP state government has decided to slash prices of soya seed by Rs 400 per quintal by offering subsidy of Rs 150 per quintal, probably for the first time.

However the industry sources have told BS, the shortage of seed still remain as high as 4 lakh quintals for the farmers. The state, according to sources needs, "9 lakh quintals of seeds. The spurious seed supply has also aggravated the problems of the farmers."

"Soyabean seed will be available at a subsidized prices of Rs 1575 per quintal this year. The price of the seed has been reduced by Rs 400 per quintal," agriculture minister Chaudhury Chandrabhan Singh said here adding, "the subsidy will be granted to 'Beej Utpadan Samitis.'

This decision has been taken since there is rise in the soya production Similarly, a subsidy of Rs 300 per quintal will be offered to the Beej Vitran (distribution) Samitis."

However, according to a survey of Indore-based Soyabean Processors Association of India (SOPA) the production of Soyabean is on decline.

The total production of soya production declined from 34 lakh ton in 2004 to 33 lakh ton in 2005 and the acreage has also reduced from 44 lakh hectares to 41 lakh hectares during 2005.

Although the minister has said stern action would be taken against the sale of fake seeds and fertilizers, the short supply keeps farmers under pressure. In absence of proper supply normally, 85 per cent of the farmers use their own seed for sowing, said industry sources.

"The certified soyabean business accounts for hardly 15 to 20 per cent and stands at about Rs 60-65 crore per year," said a source.

Madhya Pradesh grows 85 per cent of soyabean of India's total production. The size of soya crushing industry is approximately Rs 6000 crore.