The Hindu Business Line : Oilseeds farmers reaping benefits of higher prices

Chennai, Feb. 27 The Mukhati family in the Malwa region in Indore, Madhya Pradesh, owns nearly 30 hectares in which it grows soyabean during kharif season; and gram and wheat during rabi. Nearly 90 per cent of its landholding is used for cultivating soyabean.. Last year, the family harvested nearly 50 tonnes of soyabean from its farms with each tonne fetching Rs 11,500.

“This year, we have harvested 60 tonnes and we have been selling the beans at around Rs 21,500 a tonne,” says Sunil, a more vocal and prominent member of the family.

Not just the Mukhatis but other farmer families which have grown oilseeds this year are reaping benefits of higher prices. “Oilseed farmers are getting very good prices in the mandis,” says Mr B.V. Mehta, Executive Director of the Solvent Extractors Association of India.

Thanks to the advance in technology, farmers are today up-to-date with global prices for various commodities. “We see television and read newspapers to know the latest on prices of farm products,” says Anand Ambaram Thakur of Umariya village near Indore.

Prices of oilseeds are much higher than the minimum support price fixed by the Centre. Edible oil prices are on the boil, thanks to the global trend. Domestic prices have not increased as much as the global prices have, mainly due to the Centre’s policies of lowering customs duty to tame inflation and keeping the tariff value, the base price on which import duty is worked out, unchanged since August 2006.

Edible oil prices in the global market have doubled, especially for palm group of oils and soyabean oil. In the case of sunflower oil, they have increased by one-and-a-half times. In contrast, domestic prices have at the most increased by 60 per cent for kardi or safflower oil to Rs 80,000 a tonne from Rs 49,000 a year ago.

Vegetable oils

Global prices have shot up as vegetable oils are now being used for producing bio-diesel in view of crude oil prices ruling firm over the $90-a-barrel range in the last few months.

“Increase in the prices of groundnut seeds is a little lower than others because it went up sharply last year due to a poor crop,” says Mr Mehta. “There is no doubt that farmers across the country are getting good prices for oilseeds and we feel it is a good sign,” he says.

The high prices could encourage them to go for growing oilseed crop again next year.

Sunil Mukhati says the prices for soyabean have been so good this year that his family could bring in more area under the crop next season.

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