Agri Business

Higher mustard yields set to boost rabi oilseed output

Rutam Vora Ahmedabad | Updated on January 20, 2018 Published on March 25, 2016


Despite lower acreages, production seen higher by 10% at 77.41 lakh tonnes: COOIT

Driven by higher yield of mustard seed, India’s oilseed production is seen higher by about 7 lakh tonnes (lt) for the year 2015-16 rabi season, according to the industry estimates.

The Central Organisation for Oil Industry and Trade (COOIT) has pegged the overall rabi oilseed crop for 2015-16 at 77.41 lt – about 7.47 lt higher from the previous year’s 69.94 lt.

Bulk of the increase is attributed to the higher yields of mustard.

Higher yields

Even though the mustard acreage had dropped by about 66,000 hectares to 64.51 lakh hectares in 2015-16 rabi season as against 65.17 lakh hectares last year, the yields were likely to be higher by 132 kg/ha at 899 kg/ha against 767, COOIT said.

As a result, the total production of mustard is estimated at 58 lt (50 lt), the trade body said.

The untimely rains this year did help the mustard crop in some growing regions.

In Rajasthan, the largest mustard producing State, output this year has been pegged at 26.6 lt by COOIT.

Similarly, in UP the production is estimated at 8.4 lt, followed by Punjab and Haryana at 7 lt, Madhya Pradesh at 3.8 lt, West Bengal at 3.1 lt and Gujarat at 2.95 lt. Production in other States is estimated at 5.7 lt.

“Mustard is the only oilseed crop that will see significant rise in production this rabi season. However, the current season’s estimate seems lower than normal crop,” said Govindbhai Patel, an oilseeds expert from Rajkot.

“Last year, hailstorm had damaged the crop. Hence, the overall oilseed crop isn’t very encouraging,” he said.

Break up

COOIT estimates rabi groundnut output at 12.4 lt against 12.85 lt in the previous rabi season.

Sunflower output is estimated at 2.4 lt (2.5 lt).

Similarly, the sesame seed output is pegged lower at 2.25 lt (3 lt), while the production of linseed is estimated at 2.1 lt, more than double the previous season’s 1 lt.

The combined area of Kharif and Rabi oilseeds during 2015-16, according the Union government and trade estimates, is about 268.59 lakh hectares and production of nine oilseed crops for the current year (2015-16) is estimated at 203.41 lt compared to 211.09 lt of last year – down by 3.64 per cent.

Imports to rise

According to Pravin Lunkad, President, Solvent Extractors Association (SEA), the total vegetable oil availability from kharif and rabi oilseeds crops for the year 2015-15 (November-October) would remain almost same as that of last year at 72.02 lt compared to 71.95 lt last year.

“In view of lesser crop coupled with higher demand for edible oils, imports during 2015-16 (November-October) is likely to increase and is estimated at 158 lt. Import of non-edible oils is likely to be 2 lt.

Total import of vegetable oils is estimated at 160 lt during 2015-16 (November-October) against 146.1 lt in 2014-15,” said Lunkad in a letter to Association members.

Commenting on the plight of the oil crushing industry in the country, Lunkad raised the issue of duty difference between crude and refined oils.

“The refining sector of the vegetable oil industry is suffering heavily and capacity utilisation has further reduced due to larger import of refined oil in the last few months due to near equal prices of crude palm oil (CPO) and refined bleached deodorised (RBD) palm oil, which used to be around $30 to 50 previously,” he claimed.

Patel also expressed higher price trend in key oils including palm oils.

Duty difference

The import of CPO attracts 5 per cent duty, while RBD has no duty.

“RBD is being sold at the raw material price. This boosts the imports of refined oils than the crude oils. Therefore, oil millers have reduced capacity utilisation due to disparity,” said Patel.

Moreover, from April 2016 onwards, CPO export from Malaysia will attract 4.5 per cent export duty, thereby making it further costlier to import crude oils than refined oils.

“This will further hit the domestic refining industry as futures quotes showing landed cost of RBD palmolein in India will be cheaper than CPO in the coming months,” added Lunkad.

Published on March 25, 2016
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