The Hindu Business Line : Rapeseed output may top 70 lakh t

RAPESEED production this season could touch 75 lakh tonnes, thanks to a higher minimum support price (MSP) announced by the Government for the rabi season.

"Since the MSP has been increased to Rs 1,700 a quintal for rapeseed/mustard this season, farmers have been encouraged to go in for large-scale cultivation of the oilseed," an industry official said. Last year, the MSP was Rs 1,600.

According to Mr D.P. Khandelia, President of the Solvent Extractors Association of India (SEAI), if weather remains favourable, for the next two months, the country would be harvesting the record rapeseed/mustard crop of 70-75 lakh tonnes. Feedback from the growing areas revealed that sowing was better than last year, thanks to the late rains, according to the industry official.

"Late rains and higher MSP are encouraging farmers this season. The MSP fixed by the Government should be comfortable for farmers," he said.

According to the Agriculture Ministry, area under mustard/rapeseed is up at 66.10 lakh hectares as on December 29. This is against 58.60 lakh hectares during the same period a year ago and the normal coverage of 53 lakh hectares.

Rapeseed/mustard is the main oilseeds crop during rabi and last year, production was 58.32 lakh tonnes against a target of 65 lakh tonnes.

"If the current sowing trend continues, the production this year could be between 65 lakh tonnes and 75 lakh tonnes," the official said.

Mr Mehta, Executive Director of SEAI, said so far the crop has been good and the rise in coverage was an encouraging sign.

"It will not be prudent to compare current oilseed prices with that of last year which was exceptional. However, current prices should be viable for the growers," he said.

Last year, oilseed prices ruled high on lower global crop, especially in the US.

Going by the current trend in oilseeds, it could turnout to be a record for the rabi season. Coverage under the crop so far is 91.31 lakh hectares, up 7.3 lakh hectares over last year. Besides rapeseed/mustard, there has been an increase in area for safflower and groundnut crops also.

But the prospects of a higher crop has given way to concern over the prices farmers might get. Currently in the futures market, prices for March-April are ruling at Rs 1,550 a quintal.

"While the farmers have done their best to give us a record crop for crushing, my worries is whether the farmers would receive their remunerative price for their produce. This would greatly disappoint and discourage our farmers if they do not receive the remunerative price for their produce," Mr Khandelia said.

SEAI has urged the Government to ask the National Agricultural Marketing Federation to buy rapeseed/mustard as part of market intervention operations so that edible oil prices would rule around Rs 400 for 10 kg. "This will ensure remunerative prices to the growers," Mr Khandelia said.

Meanwhile, oilmeal exports are expected to decline around 30 per cent this fiscal.

"Again, we can't compare with things that happened last year when every tonne of soyameal was practically exported. This year, oilmeal exports will be lower than last year," Mr Mehta said.

Stating that there was disparity in the prices, the industry official said soyabean crushers were affected by growers' reluctance to sell at existing prices for beans. "Farmers are hoping for better prices and as a result, they are holding back their produce. This has led to lower arrivals and non-availability of beans for crushing," the official said.

"There is a disparity of at least Rs 500 a tonne between the bean and meal prices for soya," he said.

According to the Solvent Extractors Association, oilmeal exports during April-November were higher by 56 per cent at 15.74 lakh tonnes. However, the shipments have been showing a declining trend since August.

During October and November, oilmeal exports have declined by over 55 per cent compared with shipments during the year-ago period.

"There will be a glut in oilmeal availability in the coming months and therefore, our exports could be reduced a trickle," the official said.

As such, since October oilmeal exports have been taking place in small lots only.