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Amid a record rapeseed-mustard crop this year, the trade has reiterated its demand for allowing bulk exports of mustard oil from India.
Per the second advance estimate put out by the Central Government, rapeseed-mustard output is likely to be 83.97 lakh tonnes, up by about 12 per cent over the 75 lakh tonnes projected in the second advance estimate last year.
The crop is likely to be the highest since 2010-11, when the output was estimated at 82 lakh tonnes. In the meantime, rapeseed-mustard production had dipped to about 63 lakh tonnes in 2014-15.
Considering the sharp decline, collective efforts were made to increase rapeseed output in the country as the oilseed is a commodity of mass consumption.
“It seems the efforts of SEA in promoting mustard has started to bear results, if this year’s expected production is any indication. According to information available we are likely to harvest the biggest ever crop of Mustard in our Country,” said Atul Chaturvedi, President, Solvent Extractors’ Association of India (SEA) in a letter to its members on Monday.
SEA, however, estimates a higher rapeseeed-mustard crop. In the last week of February, SEA-MOPA jointly conducted a Rape-Mustard survey and provisionally estimated output of 85 lakh tonnes for the current season, 19 per cent higher than last year.
“The recent rain in Northern India might delay the harvest. Farmers have done their job of raising production of mustard. Now, it is the duty of the Government to act timely and ensure prices are not allowed to fall below MSP as that would disappoint our farming community,” said Chaturvedi, adding that the government should allow exports of mustard oil in bulk to ensure better prices.
“The Government has allowed exports of all edible oils in bulk except mustard oil. In view of the bumper mustard crop its oil should be allowed to be exported in Bulk as that would help in stabilising prices,” he added.
Last March, the Cabinet Committee on Economic Affairs, had opened export of all varieties of edible oils except mustard oil.
“Mustard oil continued to be exported in consumer packs of upto 5 kg, with a minimum export price (MEP) of $900 per tonne.
In the event of a bumper crop of the oilseed, there are fears that prices will drop sharply from the current level of about ₹3,500 a quintal in the spot markets in Gujarat as against the MSP of ₹4,200 a quintal.
Government agencies such as “NAFED, who are authorised to defend Mustard MSP should gear up and be ready to ensure prices do not fall”, the SEA said.
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