Indian farmers hold back record rapeseed crop, limiting oil supplies

Published 2022년 4월 6일

Tridge summary

India has achieved a record rapeseed-mustard crop yield of 11 million tonnes, a 28% increase from the previous year, due to higher prices and favorable soil conditions. However, the momentum of oilseed crushing is expected to decline as farmers are withholding their produce in anticipation of further price increases. The slow pace of farmer sales, coupled with reduced sunflower oil imports from Ukraine, may force India to raise its overseas purchasing of palm oil and soyoil. The price dynamics of various edible oils in India have shifted, with rapeseed oil now being priced similarly to other oils, which was not the case six months ago.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

NIWAI, India (April 5): India has harvested a record rapeseed-mustard crop, but crushing could lose momentum in the coming months as many farmers are holding back from selling to oilseed processors in the hope prices will rally further. Slow farmer selling, coupled with falling supplies of sunflower oil from Ukraine, could force the world's biggest importer of edible oils to increase overseas buying of palm oil and soyoil, despite the record rapeseed crop. "In the past two years prices rose after I sold crop to traders immediately after the harvesting. This year, I have decided to wait for a few months," said Ramras Chowdhary, a farmer in Niwai in the northwestern state of Rajasthan. Rapeseed prices were below 6,000 rupees per 100kg in March 2021 when farmers started selling the last crop, but jumped to a record 8,813 rupees in September. The rally prompted farmers to allocate more land to rapeseed when they started planting winter-sown crops in November. That, and sufficient soil ...

Source: Theedgemarkets