The ongoing rabi marketing season has witnessed a significant increase in mustard procurement, with the total quantity exceeding 9.19 lakh tonnes as of June 27. The latest data released by the National Agricultural Cooperative Marketing Federation of India (NAFED) reveals that the total value of mustard procured at the minimum support price (MSP) of Rs 5,490 per quintal has surpassed Rs 5,011 crores.
This development has brought substantial benefits to over 3.84 lakh farmers across the country. Mustard procurement operations are still ongoing in several states, including Rajasthan, Uttar Pradesh, and Gujarat.
Haryana has emerged as the leading state in terms of mustard procurement, followed closely by Rajasthan and Madhya Pradesh. In Haryana, more than 3.47 lakh tonnes of mustard has been procured, with a total value of Rs 1,891.72 crore. Similarly, Rajasthan has witnessed the procurement of over 2.94 lakh tonnes of mustard, valued at Rs 1,605.68 crore.
In Madhya Pradesh, 1.67 lakh tonnes of mustard has been procured, amounting to Rs 913 crore. Additionally, Uttar Pradesh has contributed 26,324 tonnes of mustard, worth Rs 43.47 crore, to the procurement process. According to the second advance estimates, the production of rapeseed mustard for the year 2022-23 has reached a record 128.18 lakh tonnes, surpassing the previous year's 119.63 lakh tonnes.
Despite these positive developments, the bearish trend in edible oil prices and the surge in imports continue to weigh down on mustard prices. India's import of edible oils has risen by approximately a fifth during the November to May period of the 2022-23 oil year, reaching 9.05 million tonnes compared to 7.54 million tonnes during the same period in the previous year.
In Rajasthan, the largest mustard-producing state, modal prices of mustard range between Rs 4,250 and Rs 5,100 per quintal, which is lower than the MSP of Rs 5,490. However, recent days have witnessed a slight improvement in prices.
The downward trend in mustard prices has presented an opportunity for Indian rapeseed-mustard meal in the export market. Countries such as South Korea, Vietnam, Thailand, and other Far East countries have shown an increased interest in Indian rapeseed-mustard meal due to its competitive pricing.
According to the Solvent Extractors Association of India, rapeseed meal shipments hit a new record of 22.96 lakh tonnes during the fiscal year 2022-23. In the current financial year, exports of rapeseed meal have reached 4.8 lakh tonnes during April-May, compared to 3.98 lakh tonnes during the same period last year.
