Maize Gains Edge as Kharif Oilseeds Acreage Faces Uncertainty

27-Jun-2025 01:25 PM

New Delhi: There is growing concern that the acreage under kharif oilseed crops may not see significant expansion this season, as farmers appear to be shifting their preference toward more profitable alternatives, particularly maize. Weaker prices of edible oils and oilseeds like soybean and groundnut, compared to better returns from maize, are driving this trend in several regions.
India, the world’s largest importer of edible oils, currently depends on imports for about 60% of its domestic demand—mainly palm oil, soy oil, and sunflower oil. A reduction in domestic oilseed acreage and production could keep this import dependence high.
Senior official sources suggest that maize cultivation is gaining priority over soybean due to better price realizations. While soybean is struggling to fetch attractive market prices, maize prices remain strong, supported by rising demand for ethanol production.
During the 2024–25 kharif marketing season, the government made record purchases of soybean and groundnut at Minimum Support Prices (MSP). Despite this, wholesale market prices remained weak. The government has now started offloading its stocks, which has increased soybean availability in the market.
Although the MSP for soybean was set at ₹4,892 per quintal, post-October 2024, wholesale prices have been 10–20% below MSP. Even though edible oil prices are relatively higher this year compared to last, soybean prices have remained subdued due to soft soya meal prices, which have reduced millers’ margins.
Another factor affecting farmer interest is the delayed start of government procurement. If procurement began earlier, it could boost farmer confidence. As of now, soybean sowing is 2% behind last year, and key producing states like Madhya Pradesh, Maharashtra, and Rajasthan are being closely watched for progress.