PTIMustard farmers are staring at a financial loss as the price of mustard seeds has fallen below the minimum support price (MSP) of ₹5,450 per quintal in market yards.
This has prompted the edible oil industry to seek immediate steps to arrest the fall. The industry has suggested that government agencies like the National Agricultural Cooperative Marketing Federation of India (Nafed) be asked to procure mustard seeds and defend the MSP. The industry also wants refined palm oil to be immediately put under the restricted category, or the differential between the crude and refined palm oil be raised to a minimum of 20%, to discourage import of refined palm oil, which hurts local mustard farmers.
Ajay Jhunjhunwala, president of the Solvent Extractors Association of India, said: “Unbridled imports of refined palm oil is resulting in collapse of edible oil prices which is impacting marketing of mustard at peak harvest time. Heavy imports of refined palm oil is neither helping the mustard farmers nor the refining industry.”
The government’s second advance estimate predicts a record output of 12.8 mt of mustard seeds against 11 mt last year.
Cumulative arrivals of mustard crop in February were 5,03,830 tonnes, 45% higher than the same period last year. “The arrivals are likely to increase further in March,” said Tarun Satsangi, assistant general manager (research) at Origo Commodities.
Satsangi said: “Higher carryover stock of 2.0-2.5 million tonnes of mustard, a record crop this year, 45% higher arrivals in February 2023 year-on-year and an about 15-20% plunge in the (price of) edible oils year-to-date with better soyabean supplies are good enough reasons to justify dullness in the mustard market this year.”
However, for the consumers it augurs well as mustard oil prices will not pinch their pockets unlike in early parts of 2022, when it had crossed Rs 220-230 per litre. Mustard oil is now trading at a three-year low of Rs 1,090 per 10 kg, losing 19% year-to-date. The price of refined soyabean oil has fallen about 15%.
Source: indiatimes.com
