Good news again for mustard farmers this year; market prices up to 50 per cent higher than MSP
The government has fixed the minimum support price (MSP) for mustard this year at Rs 5,050 per quintal while the prices are currently running at Rs 6,000 to Rs 7,500 in the market. That is, the market price is 20-50 per cent higher than MSP. Last year, too, the mustard prices had reached Rs 7,000-8,000 per quintal.
There is good news again for mustard farmers this year. The purchase of the new crop has started and like last year, prices are high in the market this year, too. The government has fixed the minimum support price (MSP) for mustard this year at Rs 5,050 per quintal while the prices are currently running at Rs 6,000 to Rs 7,500 in the market. That is, the market price is 20-50 per cent higher than MSP. Last year, too, the mustard prices had reached Rs 7,000-8,000 per quintal. Two years ago, mustard sold at Rs 3,500-4,500 per quintal.
Mustard prices are currently running at Rs 6,000-6,500 per quintal at several foodgrain mandis of Rajasthan, including Pilibanga, Rawatpur, Chirawa and Hanumangarh. On Wednesday, the price in Uttar Pradesh (UP) was Rs 6,400 per quintal at Lalitpur, Rs 6,325 at Hardoi and Rs 6,820 at Varanasi. In Madhya Pradesh (MP), the prices hover around Rs 6,290 per quintal at Sehore, Rs 6,360 at Harda and Rs 6,080 at Dhar. It is to be noted that mustard prices had fallen only some time ago.
The government has fixed the MSP for 2022-23 at Rs 5,050 per quintal. However, prices are running above MSP at most of the mandis. Farmers are extremely happy at getting prices above MSP. Mohan Lal Yadav and Mahendra Yadav, residents of Deva village in Jaipur who had received good prices for mustard last year, have sown mustard in an area of five acres this year. The two farmers said that traders are buying thin-grain mustard at Rs 6,500 per quintal and thick mustard at Rs 7,500 per quintal at the farmgate.
Mahesh Kumar Ninwadia is a grain merchant from Bagawas in Jaipur. He said to Rural Voice, “Mustard is high in demand at mustard mills this year.” He said that the Food Safety and Standards Authority of India (FSSAI) had stopped the adulteration of mustard oil last year on health grounds. Currently, mustard oil is selling at Rs 180 a litre, which has led to a surge in the demand of mustard. He is currently buying the common mustard crop from the farmers at Rs 6,000-6,500 per quintal. Ninwadia said, “We are buying mustard from farmers at Rs 7,500 per quintal in Bikaner and Nagaur.” Some of the mustard varieties have more than 42 per cent of oil.
Market analysts believe that the Ukraine crisis has given a fillip to mustard farming. If the war continues for long, the mustard prices may shoot higher. Currently, export demand continues along with domestic demand. This can lead to a big leap in mustard prices. However, as more and more mustard finds its way to the market, one may get to see stability in prices.
In India, mustard is mainly produced in Rajasthan, MP, UP, Punjab, Bihar, West Bengal and Gujarat. This year it has been grown on a large scale in Haryana, too.
The high prices of edible oils last year has led to farmers growing mustard in larger areas this season. According to government figures, the area under oilseeds has gone up by 18.30 lakh hectares in the Rabi season. According to the COOIT figures, the production of mustard has been 109.5 lakh tonnes (lt) in 2021-22, up by 29 per cent. India has a domestic requirement of 250 lt of edible oils while domestic production stands at 111.6 lt. Which means about 60 per cent of edible oils is imported. The edible oil imports went up from Rs 72,000 crore to Rs 1.17 lakh crore last year.
