Srinagar, April 13: As mandi prices of mustard seeds continue to decrease, farmers in J&K, especially in Kashmir valley, face an uncertain season despite a bumper crop this year.
According to reports, mustard prices in almost all Mandis in the Northern states of Punjab, Haryana, Rajasthan, etc are lower than last year, in the face of high production in these states this year and cheaper oil imports.
A report in the Financial Express said that mustard rates were even below the minimum support price (MSP) of Rs 5,450/quintal announced for the season despite the government’s decision to procure oilseed variety from farmers at MSP after two years.
Farmers in Jammu and Kashmir, especially in Kashmir valley, do not receive MSP for mustard production, with most of them selling their produce in the open market or use the edible oil for domestic use.
Union Agriculture Ministry has estimated mustard seed production at a record 12.8 MT in the 2022-23 crop year (July-June). Area under mustard in the current rabi season has been reported at a record 9.8 million hectare (MH), which is 64% more than last five years’ average sown area of 6.4 MH. In the 2021-22 season, mustard sown areas stood at 9.1 MH.
Same has been the case in Kashmir region, with a record number of farming land, including orchards, being brought under mustard cultivation.
However, the problem of plenty and low prices now may result in disappointment, as was the case with apples last year.
Currently, Rajasthan (40%), Madhya Pradesh (14%), Uttar Pradesh (9%) and Haryana (7%) have a 70% share in the country’s total mustard seed production. Jammu & Kashmir’s contribution is estimated to be lower than 5%.
As per reports, prices of mustard at Bharatpur (Rajasthan) mandi, the hub of oilseeds trade, is currently ruling around Rs 5,100-5,200/quintal, and these prices are lowest in two years.
The mandi prices in November last year was around Rs 7,500/quintal.
“Cheaper imports of edible oil such as palm oil along with low import duties have resulted in decline in demand for the mustard seed this season,” Krishan Kumar Agarwal, president, Bharatpur Oil Millers Association, told FE.
According to Roop Singh, CEO, Uttan Mustard Producers Company, an FPO based in Astavan village (Bharatpur), while in the last two years the farmers have received remunerative prices, which are reasonably more than the MSP, this year’s record harvest is expected to hit farmers hard because of sharp fall in mandi prices.
Processors and trade bodies have urged the government to raise import duties on edible oil so that domestic mustard seed could appreciate.
“Unbridled imports of palmolein is resulting in collapse of edible oil prices, which is impacting marketing of mustard at peak harvest time and causing distress to farmers,” Ajay Jhunjhunwala, president, SEA, had stated in a communication to the food ministry.
At present, crude palm, soyabean and sunflower oils imports attract only 5% agri infra cess and a 10% education cess upon it, meaning a total tax incidence of 5.5%.
India imports about 56% of the annual edible oil consumption of around 24 to 25 million tonne (MT). About 8 MT of palm oil is imported from Indonesia and Malaysia annually.
The share of domestic edible oil includes mustard (40%), soyabean (24%) and groundnut (7%) and others.
The government is aiming to procure 2.7 MT of the oilseed from farmers in key producing states – Rajasthan, Madhya Pradesh, Uttar Pradesh, Haryana and Gujarat.
