Higher oilseed price may prompt Indian farmers to expand area

Prices of key kharif oilseeds such as groundnut and soyabean are ruling higher compared to levels a year ago at the start of planting season. The trend will likely encourage farmers to expand the acreages across all key growing regions, say traders.

Prices of soybean have increased in recent months due to the tight demand-supply situation. As per Solvent Extractors Association of India data, the ex-mandi soybean prices as of June 5, stood at 68,000 per tonne in Indore, higher than the average of ₹43,396 per tonne a year ago.

Soybean prices are currently ruling higher than the minimum support price (MSP) of ₹5,708 per quintal announced by the Government for the 2026-27 marketing season.

Similarly, groundnut prices were ruling higher at ₹72,000 per tonne as of June 5 in Saurashtra, this year over Rs 53,720 a year ago. However, groundnut prices are a tad lower than the MSP announced for 2026-27 at Rs 7,517 per quintal. Sunflower price are ruling higher than around Rs 70,000 levels per tonne a year ago in Karnataka and Maharahstra, as per SEA data.

“The area under soybean will go up across all producing States, but it is too early to comment on the extent of increase,” said D N Pathak, executive director of Soyabean Processors Association of India (SOPA).

In Karnataka, where the sowing of soybean has already started, there’s a rush from farmers to buy the seeds in some districts like Haveri, according to reports.

In Gujarat, the largest producer, groundnut has been planted on about 55,788 hectares as on June 8, ove 31,110 hectares a year ago, per State Agriculture Department Data. As per the kharif sowing data released by the Agriculture Ministry, oilseed were sown in about 0.42 lakh hectares (lh) as on June 5 over 0.52 lh a year ago. Total area under oilseeds was 196.38 lh during the kharif 2025-26 season.

Sanjeev Asthana, President, SEA of India, in a recent letter to member of the trade body, said: “Sustained price realisations and improving market sentiment may also encourage farmers to expand oilseed acreage during the upcoming kharif season, supporting domestic production growth over the longer term.”

“Sunflower seed, meanwhile is also showing strengthening price alignment with MSP support, now raised to ₹8,343 per quintal, thereby strengthening price assurance and encouraging farmers to expand sunflower cultivation alongside mustard” he said.