Concern over collapse of mustard prices below the MSP

With a view to arresting the collapse of mustard prices below the Minimum Support Price level, state-run agencies like NAFED may be asked to immediately gear up to procure the oilseed and defend the MSP announced by the government.

This has been suggested by the Solvent Extractors' Association of India, a premier association of vegetable oil industry and trade, in a memorandum to Sanjeev Chopra, Secretary, Department of Food & Public Distribution, Ministry of Consumer Affairs & Food and Public Distribution, Sunil Barthwal, Secretary, Ministry of Commerce, and Manoj Ahuja, Secretary, Ministry of Agriculture & Farmer’s Welfare. 

The memorandum said that certain developments pertaining to Rape-Mustard Seed market required immediate attention and intervention by the Government or else oilseed farmers would be "terribly disappointed" as they face huge financial loss. 

The association suggested that Palmolein should immediately be put under Restricted Category or the Differential between CPO and Palmolein be raised to minimum 20% to discourage import of Palmolein. 

"The Government has declared an MSP of Rs.5,450/- per quintal for Rape-Mustard Seed for current Rabi Marketing Season 2023-24. Prices of mustard in the market yards have crashed below the MSP of Rs 5450 a quintal and the arrivals are increasing on a daily basis. Further dropping of the price cannot be ruled out. 

"The drop in prices is causing serious distress and financial loss to our farmers and we fear if the trend continues all our efforts at moving towards Atmanirbhar Bharat in edible oils would be negatively impacted. We should not allow our mustard farmers to be discouraged." 

Association's President Ajay Jhunjhunwala said unbridled imports of Palmolien (Refined Palm oil) is resulting in collapse of edible oil prices which is impacting marketing of mustard at peak harvest time and causing distress to our farmers. 

"We feel heavy imports of Refined Palmolien is neither helping our mustard farmers nor the Indian refining industry. It is also contrary to our Prime Ministers clarion call of ‘Make in India’," he said.

He suggested that Palmolien should be immediately put under Restricted Category or the Differential between CPO and Palmolien be raised to minimum 20% to discourage import of Palmolien. "This action will have a salutary effect on improving mustard prices and also help improve capacity utilisation of our domestic Refining industry. We trust our suggestions would be implemented on top priority to save our oilseed farmer as well as our domestic refining industry from impending ruin.

"These actions may also ensure limited buying by Government Agencies to defend MSP and help curtail losses," he added.