Soybean prices have fallen sharply to trade below the government's Minimum Support Price (MSP) in major wholesale markets across the country, due to a surge in arrivals during the ongoing peak harvesting season. Data compiled by government-owned web portal Agmarknet says Soybean in Indore was quoted at Rs 2,711 a quintal for the week ended October 31, down 5.7% from the earlier week and 43.5% from the corresponding period last year. Soybean's MSP is Rs 2,850 a quintal, in addition to a Rs 200 bonus for farmers to encourage sowing. By Agmarknet data, Soybean arrivals across the country were 1.09 million tons in October, compared to 1.04 million tons in the comparable month last year. The Union Ministry of Agriculture forecast India's output at 12.21 million tons in its First Advance Estimate, issued on September 22, compared to 13.79 million tons the previous year. The industry, however, estimates India's total bean output at eight mt this year. Meanwhile, encouraged by an increase in import duty, coupled with the low Soybean price, oil mills are crushing more Soybeans this year.
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