Price dynamics of soybean in Belagavi district of Karnataka: A comprehensive study

Abstract

Soybean (Glycine max) is a globally significant commodity, serving as a crucial source of edible oilseeds, vegetable protein and acting as a fundamental raw material for various chemical products. This study delves into the intricate dynamics of the soybean market by analyzing ten years of secondary data obtained from the Krishimaratavahini website, specifically focusing on market arrivals and prices of soybean. Bailhongal and Hukkeri markets have been selected for the study purpose in the Belagavi district as they are the major markets in the district. The research employs the calculation of seasonal indices to uncover nuanced patterns in market fluctuations, providing valuable insights for stakeholders, particularly farmers to make informed and strategic decisions. A key finding reveald a robust negative correlation coefficient of 0.89 (significant at the 1% level) and 0.67 (significant at the 5% level) between average monthly arrivals and prices of soybean in the selected markets. This emphasizes the inverse relationship between market arrivals and prices, underscoring the necessity for farmers to understand these dynamics for optimizing their selling strategies. Furthermore, the study identifies critical peaks in seasonal indices, highlighting October as the month with the highest market arrivals indexed at 241.09 and 366.13, April and May stand out as pivotal months, securing the highest seasonal indices for market prices in Bailhongal and Hukkeri markets, respectively indexed at 107.83 and 109.58. These insights offer a nuanced understanding of temporal fluctuations in the soybean market, enabling stakeholders to make decisions that maximize profits. The study stresses the imperative use of proper techniques aligned with the identified months of higher seasonal indices, ensuring optimal returns for farmers and contributing to the overall stability of the soybean market.