Bumper harvest, imports depress mustard prices
Projection of a bumper harvest and higher imports of edible oils has impacted domestic mandi prices of mustard, a key oil seed, which is currently ruling below the minimum support price (MSP), traders and farmers said.
While harvesting is currently in the full swing in key producing states, mandi prices of mustard seed, at Bharatpur (Rajasthan), the hub of the country’ trade was ruling around average price of Rs 5100/quintal on Monday against a minimum support price of Rs 5650/quintal for 2023-2024 season.
This is the second year in a row mustard prices are ruling below MSP because of surge in imports.
Roop Singh, CEO, Uttan Mustard Producers Company, a FPO based in Bharatpur told FE that while in 2020 and 2021 the farmers have received remunerative prices which was reasonably above the MSP, prices have been ruling below MSP since last year as there has been increase in imports of edible oil as global prices have soften and the government has slashed import duties.
