Soya, mustard, chana rise as farmers expect higher MSP

New Delhi: Soyabean, mustard and chana prices have shot up marginally in the spot market following election results in the growing states of Madhya Pradesh, Rajasthan and Chhattisgarh on expectations that the new government will raise MSP for these commodities.

The Congress, in its manifesto for Madhya Pradesh, had said that mandi tax will be reduced from 2.2 per cent to 1 per cent and that it will give a bonus and higher MSP for farm commodities. Similarly, in Chhattisgarh it had said that it will give Rs 2,500 per quintal for rice and Rs 1,700 per quintal for maize.

Soyabean and coriander prices are up 3 per cent, mustard and maize have risen 5 per cent and chana 4 per cent since December 11.

Spot prices of soyabean have increased from Rs 3,200 per quintal to Rs 3,300 per quintal, mustard seed prices increased from Rs 3,900 to Rs 4,100 a quintal, coriander from Rs 7,200 to Rs 7,400 a quintal and maize prices increased from Rs 1,650 to Rs 1,750 a quintal in the last four days, said Anuj Gupta, deputy vice-president of commodity research, Angel Commodity. “The market has reacted positively in the past few days post the election results and we have seen prices firming up which were earlier below the government’s MSP. Companies and traders are buying for current consumption as they expect prices to further increase,” he said.

Kailash Partani, a trader in Chhawani mandi in Indore, said the trade was waiting for government formation in Madhya Pradesh. “The prices of chana have increased by 4 per cent since the past three days to Rs 4,400-4,600 a quintal. In the short run, till the first cabinet meeting of the state, prices will continue to be firm,” he said.

Traders and companies also said they expected the Congress government to either give additional bonus or extend the Bhavantar Bhugtan Yojna, which is set to end by January, 2019.