Soybean production cost and CACP recommendations

Hon’ble Shivraj Singh Chavan
Ministry of Agriculture and Farmers Welfare,
Government of India.
by
Hon’ble Collector,
Collector’s Office,
parbhani

Subject :
🌀 Recommendations for determining MSP based on cost of production by Soybean producing states under the Comprehensive Scheme of CACP having shortcomings and should be amended.
🌀 To get market price above MSP for soybean crop produced in Kharif season 2024, 🔅 Import duty on edible oil should be increased.
🔅 Whole soybeans produced by farmers should be procured as per MSP.
🔅 Incentive subsidy should be given to increase export of soybeans.
🌀 In the previous triennium 2022-23 Maharashtra’s production share is 45.7 % of the total production. Considering the fact that the cost of production of soybeans per quintal of the Maharashtra’s farmers has reached Rs 4,500 to Rs 4,900. Due to this, the farmers are suffering losses and this is a matter of concern, regarding taking immediate measures accordingly.

🎯 Hon’ble Minister of Agriculture Shivraj Singh Chavan, during the period from 2014 to 2024 the beloved Prime Minister of the country Hon’ble Narendra Modi ji tried to attract the farmers by giving different slogans like ‘Dr. Swaminathan commission’s recommendations’ will be implemented for the farmers i.e. farmers get price of agricultural produce according to C2+50 % profit formula, ‘Double the income’, ‘Aache din’ and ‘Modi’s guarantee’. As a farmer I can guarantee that none of these slogans have been fulfilled. I am Hemchandra Ramrao Shinde a soybean producing farmer from Village Ravarajur, Taluka Palam, District Parbhani. Hon’ble Minister expected to answer some questions. CACP’s (Commission for Agricultural Costs and Prices) comprehensive scheme for fixing the MSP (Minimum Support Price) of agricultural commodities has several shortcomings.

To arrive at a projected cost of production for the current year, then, CACP uses the ‘actual estimates’ available for the most recent three years. Thus, the projected cost of cultivation (CoC) (in rupees per hectare) for the crop season of 2024–25 is based on ‘actual estimates’ of the crop seasons of 2020–21, 2021–22, and 2022–23.

Compared to the previous three years, the production cost of the farmers has increased in the current year. so according to the comprehensive scheme, the production cost decided by CACP for the current year is less than the actual production cost of the farmers and it is not related to the cost of the current year. So the MSP determined in this way will not be satisfactory for the farmers. Many errors are found in the scheme implemented in the state to determine the cost of production. Such as the price policy for kharif crops marketing season 2024-25, the cost shown on various items to calculate the production cost of one hectare of soybean crop is controversial.

🔶 HUMAN LABOUR COST
In the state of Madhya Pradesh, while calculating the cost of one hectare of soybean production, the human labor cost has been shown to be Rs 8,151 per hectare for 2020-21, 8167 per hectare for 2021-22 and 8,472 per hectare for 2022-23. It is not possible to cultivate one hectare of soybean with such low cost of human labour. This cost shown by CACP is questionable.

During 2021 and 2022, the cost of cutting and stacking soybeans per hectare in Maharashtra was Rs 11,000 to 12,000. The cost per hectare for soybean sowing, spraying, weed control, permanent labour, family labor and cutting and stacking is more than Rs 30,000 per hectare. The total human labour expenditure of the state of Madhya Pradesh for 2022 is shown to be only Rs. 8,472. Aggregate expenditure for other states including Madhya Pradesh is shown to be very low.

🔶 BULLOCK LABOUR
In the state of Gujarat, the expenditure on one hectare of soybean production cost for a pair of bullock is Rs. 3,580 per hectare for 2020-21, Rs. 1,698 per hectare for 2021-22 Rs. 1,628 per hectare for 2022-23, In the state of Madhya Pradesh, the expenditure on one hectare of soybean production cost for a pair of bullock is Rs 298 per hectare for 2020-21, Rs 345 per hectare for 2021-22 and Rs 350 per hectare for 2022-23. In calculating the production cost of one hectare of soybean in Rajasthan state, the expenditure on pair of bullock is Rs. 154 for 2020-21. per hectare, Rs. 179 per hectare for 2021-22 and Rs. 176 per hectare for 2022-23. Taking out cost of one hectare of soybean production in Telangana state, expenditure on bullock pair is Rs. 1,324 per hectare for 2020-21, Rs. 1,393 per hectare for 2021-22. Rs. 512 per hectare for 2022-23, the question is whether one bullock pair can cultivate one hectare at such a low cost?

Per day cost for (dry and green) fodder, concentrates (doc) for a Bullock pair in Maharashtra is about Rs. 275 to 325 rupees, medical cost and Bullock pair price depreciation is about 50 rupees per day. Per day expenditure on a bullock pair is above 375 per day in Maharashtra where as other state shown below 375 rupees for a whole kharif season, how it could be possible?

🔶 Expenditure on work by machine
In the state of Madhya Pradesh, the total expenditure on human labor is shown to be low and the expenditure on machinery is also shown to be low. In the states of Madhya Pradesh in 2020-21, 2021-22 and 2022-23 respectively, the cost of human labor is Rs. 8,151, Rs. 8,167 and Rs. 8,472 per hectare and the cost of machinery is Rs. 6,950, Rs. 7,680 and Rs. 7,956 respectively. As expenditure on human labor decreases, expenditure on mechanized agriculture is expected to increase. In the states of Madhya Pradesh, the expenditure on both human labour and mechanized agriculture cannot be so low as compared to other states.

🔶 SEED COST
During the period January 2021 to June 2022, the average soybean market price in Latur and Indore, the main soybean markets of the country, was Rs. 8,000. Accordingly, the minimum price of soybean seed was Rs. 10,000 per quintal. According to 75 kg seed recommendations’ per hectare and price of Rs. 100 per kg, at least Rs 7,500 per hectare would be spent on seed. In kharif season 2021-22 and 2022-23, cost per hectare of seed is shown as Rs. 5,544 and Rs. 5,955 in Gujarat state, Rs. 3,694 and Rs. 4,174 in Karnataka state, Rs. 5,670 and Rs. 5,918 in Madhya Pradesh states, Rs. 3,822 and Rs. 4,936 in Telangana states. Average market price of soybeans in the period 2021 and 2022 was Rs. 8,000 per quintal, where as in states of Gujarat, Karnataka, Madhya Pradesh and Telangana the price of seeds per hectare is as low as Rs. 3,600 to Rs. 5,900. CACP should explain how it is possible.

Soybean seed of ‘Eagle Seed’ (Indore, Madhya Pradesh) was priced at Rs. 3,360 per 30 kg in Maharashtra. 75 kg of seeds for one hectare and cost of seeds for one hectare comes to 8,400 rupees. In 2021, the average market price of soybeans in Madhya Pradesh and Maharashtra is Rs. 8,000 per quintal and the price of soybean seeds is Rs. 11,200 per quintal but CACP report says 5,670 rupees (Rs. 75.60 per kg) per hectare in Madhya Pradesh, 3,694 rupees (Rs. 49.25 per kg) per hectare in Karnataka, 3,822 rupees (Rs. 50.96 per kg) per hectare in Telangana states. How it is possible, CACP’s explanation is necessary.

In the state of Maharashtra in 2022, ‘Booster company’s ‘soybean seeds are available at 3,500 rupees per bag i.e. 8,750 rupees per hectare, it is necessary to compare this seed price with the seed price of other states for 2022 year.

🔶 FERTILIZER COST
CACP has shown that the expenditure on chemical fertilizers in various states is lower than the actual expenditure. In the state of Gujarat during the period 2020-21, 2021-22, 2022-23, the expenditure on chemical fertilizer is Rs. 2,435 per hectare, Rs. 1,600 per hectare, Rs. 2,437 per hectare, respectively. In the state of Madhya Pradesh, the expenditure on chemical fertilizers during the period 2020-21, 2021-22, 2022-23 has been shown as Rs. 1,956 per hectare, Rs. 2,128 per hectare, Rs. 2,325 per hectare respectively. In the states of Rajasthan, the cost of chemical fertilizers to cultivate one hectare of soybeans is ridiculous. In the state of Rajasthan, the expenditure on chemical fertilizer during the period 2020-21, 2021-22, 2022-23 is Rs. 423 per hectare, Rs. 575 per hectare, Rs. 849 per hectare respectively. CACP should tell how the chemical fertilizers required for one hectare of soybean cultivation will be available at Rs. 400 to 800. In the states of Telangana, the cost of chemical fertilizer per hectare of soybean cultivation in 2021-22 has been shown to be Rs. 2,625 and a lower amount of Rs. 2,137 in 2022-23. Was chemical fertilizer cheaper in Telangana state in 2022-23 than in 2021-22? CACP is expected to answer this question.

Farmers use DAP fertilizer for soybean crop. In Maharashtra in 2021, a bag of DAP fertilizer was available for Rs. 1,200, according to which it costs Rs. 3,000 for one hectare. In 2021, the cost of chemical fertilizer for one hectare of soybean in Rajasthan is shown to be Rs. 575. A bag of 20:20:00:13 fertilizer was available at Rs. 1,470 in 2022 in Maharashtra, corresponding to a cost of Rs. 3,675 per hectare. In 2022, the cost of chemical fertilizer for one hectare of soybean in Rajasthan is shown to be Rs. 849. CACP needs to explain how this miracle is possible. Agriculture University recommends 10 to 15 kg sulphur application per hectare for soybean crop, if a cost of sulphur application includes total fertilizer cost goes higher than CACP mentioned in its kharif report 2024-25.

🔶 PESTICIDES COST
Expenditure on pesticides in 2020-21, 2021-22, 2022-23 respectively in Gujarat states Rs. 1,257, Rs. 901, Rs. 1,993 per hectare, Karnataka state Rs. 1,536, Rs. 1,698, Rs. 1,872 per hectare, Madhya Pradesh states Rs. 2,338, Rs. 2,519, Rs. 2,639 per hectare, Maharashtra state Rs. 2,692, Rs. 3,026, Rs. 3,552 per hectare, Rajasthan states Rs. 1,852, Rs. 2,306, Rs 2328 per hectare, Telangana states Rs. 1,686, Rs. 1,782, Rs. 2,258 per hectare. Actual farmers’ cost per hectare of soybean pesticide spraying is higher.

Soybean producer farmers sprays herbicides, insecticides, fungicide, plant growth regulators (PGR), plant growth promoters (PGP), micronutrients etc. Generally, Indian soybean farmers use Odyssey as herbicide, Coragen and Fame as insecticides and Shameer as fungicide for spraying. 100 g Odyssey, 150 ml Koragen, 1 liter Shameer, 250 ml Fame recommended for spraying one hectare soybean. 100 gm Odyssey costs Rs. 1,600, 150 ml Koragen costs Rs. 1,740, 1 liter Shameer costs R.s 900, 250 ml Fame costs Rs. 3,620, all together costing Rs. 7,860 per hectare for spraying. This is the minimum cost and does not include any PGR or PGP, micronutrients. While farmers actual minimum cost of one hectare of soybean spraying in Maharashtra in 2021 is Rs. 7,860, the CACP shows the total cost of one hectare of soybean spraying in Gujarat state is Rs. 901. It is important to note that CACP has shown very low cost of one hectare soybean spraying for all states including Maharashtra, Gujarat, Karnataka, Madhya Pradesh, Rajasthan and Telangana.

🔶 CROP INSURANCE PREMIUM
In many districts of Maharashtra, the crop insurance premium for one hectare of soybean for farmers in 2020-21 and 2021-22 is Rs. 900 and in 2022-23 it is Rs. 1,100. The question is on the basis of which CACP has indicated the crop insurance farmer’s premium in Maharashtra as Rs. 107, Rs. 252, Rs. 331 per hectare in 2020-21, 2021-22, 2022-23 respectively.

The per quintal cost of soybean production proposed by CACP of the six soybean producing states of Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana will be controversial in many respects if compared with actual per quintal production cost of the farmers. Apart from Maharashtra, the production cost of Gujarat, Karnataka, Madhya Pradesh, Rajasthan, Telangana etc. according to A2+FL is Rs. 30,000 to 45,000 Rs. per hectare. According to A2+FL the actual cost of production per hectare of farmers in Maharashtra is Rs. 80,000. If the cost of production proposed by CACP is presented to the farmers of all the soybean producing states, it is not possible for the farmers of any state to accept the cost. CACP has unfairly understated expenditure on all aspects of human labour, bullock labour, seeds, fertilizer and insecticide etc., the understated expenditure will surely be challenged by the farmers.

🎯 Honorable Minister of Agriculture and farmers welfare, you are a sensitive person. We hope that you will understand the problems of the farmers and take a decision in the interest of the farmers soon considering all the above points to make the farmers economically stable. We hope that you will soon provide relief to all the soybean producer farmers in Parbhani district and to the soybean producer farmers in various states of the country.

🔅 Hemchandra Shinde,
(Raorajur), Parbhani.

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