India: High production and palmolein imports to blame for low market price of rapeseed?

Published Mar 6, 2023

Tridge summary

Mustard farmers are facing challenges as market prices for the rapeseed mustard crop have dropped to or below the minimum support price (MSP) set by the government for the 2023-24 Rabi marketing season. The government has set the MSP at Rs 5,450 per quintal, while market prices range from Rs 4,800-5,200 per quintal. This is a significant decrease from the prices last year. The increase in mustard cultivation area and heavy imports of refined palmolein are contributing to the price crash. The Solvent Extractors’ Association of India (SEA) has urged the government to either restrict palmolein imports or increase the differential between crude palm oil and palmolein to discourage imports, and has suggested that the National Agricultural Cooperative Marketing Federation of India should procure mustard to support farmers and the MSP.

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

Original content

Mustard farmers are in a fix as the market prices of the rapeseed mustard crop were hovering close to the minimum support price (MSP) or even below in some areas the last few weeks. The government has declared an MSP of Rs 5,450 per quintal for rapeseed mustard for the current Rabi marketing season 2023-24. At the mandi (market) closest to 9 Knn village in Rajasthan’s Hanumangarh district, the prices are currently ruling between Rs 4,800-5,200 per quintal, said Jitender Kumar, a mustard farmer from the village. “Last year, the rates were between Rs 6,300-6,500 per quintal,” he added. Kunar has sown the crop on 1.5 hectare (ha). He feared that in the next 15 days when he will start harvesting the crop, the prices would fall further. Om Prakash, another mustard farmer from Charanwasi village in Hanumangarh, said that compared to last year’s prices of Rs 7,000 per quintal at the nearest Nohar mandi, the rates of the oilseed crop have fallen to Rs 5,200-Rs 5,400 per quintal. He added: ...

Source: Down To Earth