The Government has increased the Minimum Support Price (MSP) of soybean for the Marketing Season 2024-25 by INR 292 per quintal (6%) to INR 4,892 per quintal, compared to last year's INR 4,600 per quintal.

As per the Commission for Agricultural Costs and Prices (CACP), the cost of production (A2+FL) for soybean for the 2024-25 Kharif marketing season is estimated at INR 3,261 per quintal (A2 at INR 2,829 per quintal and FL at INR 432 per quintal). The cost of production varies across states, being lowest in Madhya Pradesh (INR 2,882 per quintal) and highest in Rajasthan (INR 3,833 per quintal). In Maharashtra, the largest soybean-producing state, the cost of production is INR 3,492 per quintal, which is higher than the all-India average but lower than Rajasthan's.

With the current MSP of soybean set at INR 4,892 per quintal and the cost of production at INR 3,261 per quintal, the net margin stands at 50%. This increase in MSP is expected to encourage farmers to grow more soybean crops.

However, in recent years, the yearly average prices for mill-quality soybean have remained above the MSP, which has limited government procurement of soybean. The last time the Indian government procured soybean at the MSP was several years ago. Despite the increase in MSP, government procurement of soybean has not been active, which could be a setback for soybean farmers even with the higher MSP for 2024-25.