Is Madhya Pradesh's 'Yellow Gold' Turning to Dust? The Crisis Facing Soybean Farmers

Bhopal- Soybean has long been hailed as one of the most beneficial crops worldwide, and in Madhya Pradesh, it has played a pivotal role in shaping the state's agricultural and economic landscape. During the 1980s, when Madhya Pradesh faced severe economic crises and widespread poverty, soybean emerged as a beacon of hope, helping farmers and the rural economy recover.

More than just an agricultural commodity, soybean became the backbone of the state's economic revival, contributing significantly to livelihoods and industry growth. The history of soybean farming in Madhya Pradesh dates back to the rising global demand for oilseeds and protein-rich crops in the 1980s. By the 1990s, the state had cemented its position as India's largest soybean producer, accounting for over 50% of the country's total production.

Often referred to as the ‘Soya State of India,’ Madhya Pradesh transformed its agricultural identity through soybean farming, with the crop earning titles like ‘Yellow Gold’ and the ‘Golden Bean of the 21st Century.’ Beyond its economic advantages, soybean has enriched the state's soil health through its natural nitrogen-fixing properties, enhancing fertility and reducing dependence on synthetic fertilizers.

However, in recent years, the once-thriving soybean sector has faced mounting challenges. The soaring costs of seeds, fertilizers, and labour, coupled with stagnant market prices, have led to economic distress for farmers. The same crop that once uplifted the agrarian community now poses financial hardships due to inflation and inadequate pricing policies. If timely interventions are not implemented, the sustainability of soybean farming—and the future of Madhya Pradesh's agricultural prosperity—may be at risk.

What's Trapping Farmers in the Vicious Cycle of Debt and Declining Returns?

Despite government promises to double farmers' income, the harsh reality is that many farmers in Madhya Pradesh are struggling to afford even their basic needs. Inflation has severely worsened their conditions, as the cost of seeds, fertilizers, and labour has soared, while crop prices have stagnated for over a decade. The economic disparity has deepened, making soybean cultivation increasingly unviable.

Rising Input Costs, Stagnant Prices:

The sharp increase in input costs has eroded profitability. The price of seeds, fertilizers, and labour has doubled, yet farmers continue to receive the same returns as they did ten years ago.

The Gamble of Monsoon and Climate Change:

Indian agriculture remains highly dependent on monsoons, and global warming has made weather patterns erratic. Farmers are forced to cultivate crops under unpredictable conditions, making them vulnerable to heavy losses.

Shortage and Poor Quality of Seeds:

Timely availability of high-quality seeds is crucial for successful crop production. However, farmers struggle to procure seeds, with only 1 in 70 obtaining them on time. Even when they do, quality and quantity are unreliable, further jeopardizing yields.

Santosh Sharma, a farmer from Narsinghpur district, shared his frustration: "I have visited the agriculture centre multiple times, yet I am unable to get good quality soybean seeds in satisfying quantity. This directly affects my production and puts me in a difficult financial situation."

Lack of Awareness and Agricultural Support:

Modern farming techniques and technological advancements could significantly improve productivity, yet a lack of education and extension services prevents farmers from accessing these benefits. Agricultural offices remain understaffed, leaving farmers without guidance or innovation.

Market Prices Fail to Cover Production Costs:

Even when farmers manage to cultivate their crops successfully, selling them becomes another ordeal. Market prices remain below the cost of production, leading to heavy financial losses and deepening their economic distress. "Mohan Singh Rajput, a small farmer from Vidisha, district, is drowning in debt despite a good soybean harvest. ‘The price was so low, I couldn’t even cover my costs,’ he says. Forced to borrow more just to survive, his struggle reflects the harsh reality of many farmers—growing crops, but sinking in debt."

Decreasing Yields and Increasing Debt:

The combination of poor-quality seeds, climate stress, and lack of support has resulted in declining yields. Meanwhile, production costs have skyrocketed, turning farmers into the biggest losers in this economic equation.

With increasing input costs, declining yields, and inadequate support systems, farmers are the biggest losers in this economic equation. Their hard work is undervalued, their struggles unnoticed. Without immediate and effective reforms, the conditions of farmers will continue to weaken. With declining yields, mounting debts, and a system that offers more promises than solutions, farmers find themselves at the losing end.

What Reforms Are Farmers Demanding to Ensure Their Survival?

In light of these challenges, farmers have put forth several urgent demands to ensure their survival and financial stability:

1. Timely Availability of High-Quality Seeds: Farmers need an assured supply of highquality seeds in sufficient quantity before the sowing season to avoid delays and production losses.

2. Comprehensive Crop Insurance (Fasal Beema Yojana): As PMFBY scheme aims to ensure the stability of farmers' income. After 2020, the scheme became voluntary, reducing farmers participation as they are unable to afford even the subsidised premium. By reducing private sector involvement and making it a fully governmentbacked scheme.

3. Fair Pricing for Crops: Farmers are often forced to sell their produce at prices lower than production costs or even feed crops to cattle when market conditions are unfavourable. With a rise in soya oil prices, the MSP for soybean must be increased to at least ₹8000 per quintal to ensure profitability.

4. Addressing Quality Concerns in Markets: Farmers report that their soybean crops are often rejected due to alleged low quality or impurities, leading to further financial losses. Transparent quality assessment and fair pricing mechanisms are necessary.

5. Employment of Agricultural Officers: The severe shortage of agricultural extension officers must be addressed so that farmers receive timely guidance on modern farming techniques, technology, and innovative cultivation practices to improve yield and profitability.

6. Expansion of Export Promotion: Rather than relying on imports, the government should focus on increasing soybean exports from Madhya Pradesh to strengthen the domestic market and increase farmers' income.

7. Guaranteed Minimum Income: Farmers demand a minimum guaranteed income or price support to shield them from economic shocks caused by monsoon failures or price fluctuations.

8. Pre-Sowing Crop Area Information: The government should provide real-time data on the total soybean acreage sown in the state before the sowing season. This will help farmers make informed decisions on crop selection to avoid overproduction and price crashes.

9. Improved Storage and Market Infrastructure: Lack of proper storage facilities forces farmers to sell crops at lower prices. Investment in warehouses and cold storage units would help stabilize market supply and prevent distress sales.

10. Subsidies on Farming Inputs: With rising costs of seeds, fertilizers, and labor, increased subsidies and financial support for farmers are needed to offset these expenses.

How Can Science Bridge the Gap Between Knowledge and Practice?

A major challenge in Madhya Pradesh is that most farmers are small-scale cultivators with limited exposure to advanced agricultural practices. Unlike commercial farmers, small farmers often hesitate to adopt new techniques due to a lack of awareness and fear of failure. However, modern agricultural science offers several methods to enhance productivity and secure seed availability for future cultivation. In a discussion with agricultural scientist Dr. Manoj Kumar Ahirwar, he emphasized the importance of proper seed management to maintain quality over multiple years.

He explained, "Farmers can preserve their seeds for 4-5 years by ensuring that no mixture occurs at any stage—whether during cutting, sowing, or storage. Proper seed grading is essential, and using an advanced separator machine, like the Kala Separator Grader, can help farmers maintain seed viability."

Furthermore, he suggested that farmers can also produce their own seeds through appropriate processes to reduce dependency on external suppliers. To stay updated with new agricultural techniques, farmers should actively engage with institutions such as Krishi Vigyan Kendra (KVK), Agricultural Research Centers, and Agriculture Departments. They should also participate in agricultural fairs (Krishi Melas) and follow dedicated agricultural channels to enhance their knowledge.

Economic Viability of Soybean Cultivation

Soybean (Glycine max), a leguminous crop, is widely cultivated in regions with moderate rainfall and temperatures ranging between 20-30°C. It is highly valued for its ability to fix atmospheric nitrogen, which enhances soil fertility and reduces dependency on synthetic fertilizers. With an impressive nutritional profile, containing approximately 40% protein and 20% oil, soybean serves as a cornerstone in both the agricultural and industrial sectors. Its cultivation presents significant economic advantages and diverse applications across multiple industries, making it an essential driver of sustainable economic growth.

Soybean cultivation is relatively low-cost compared to other oilseeds, ensuring better returns for farmers. Due to its nitrogen-fixing ability, it minimizes the need for expensive fertilizers, thus reducing input costs. Moreover, its short growing cycle and adaptability to various climatic conditions make it a lucrative option for farmers seeking sustainable income sources. By improving soybean pricing and enhancing market access, farmers can achieve greater economic stability, ultimately fostering rural development and agricultural prosperity.

Rather than relying on imports of edible oil, the government should implement policies to boost domestic soybean processing and export. Encouraging soybean oil production and promoting exports of soy-based products can enhance the state's economic standing and create employment opportunities across various sectors, from agriculture to manufacturing. Investments in soybean-based industries can further contribute to industrial diversification, economic self-sufficiency, and long-term sustainability.