Thane, Apr 29: In a recent release by Central Organization for Oil Industry & Trade (COOIT) for estimates of mustard seed production for 2021-22 crop year, the Organization has pegged the production to an all-time high of 109.50 lakh tonnes, up 29 per cent over 85 lakh tonnes produced in the previous year. The area under coverage has been pegged at 87.44 lakh hectares, while the average yield is seen at 1,270 kg per hectare. Production in Rajasthan, the largest mustard producing state, is expected to increase up to 49.50 lakh tonnes in 2021-22 from 35 lakh tonnes in the previous year. In Uttar Pradesh, another major producer, production is likely to increase from 13.5 lakh tonnes to 17 lakh tonnes. As per the second advance estimates of Agricultural production, India is expected to produce 11.45 million tonnes of mustard seed in the crop year 2021-22, as against the targeted production of 10.2 million tonnes and against the last year’s production of 10.21 million tonnes. So, despite the crop being far more than last year, crushing won’t pick up unless farmers sell their harvest. As a result, crushing could lose momentum in the coming months as many farmers are holding back from selling to oilseed processors in the hope of prices rising further. Total arrivals across major ‘mandis’ of the country have been around 7.22 lakh MT against last month’s arrivals of 13.08 MT. This reduction in arrival is due to farmers keeping away from selling at current rates in anticipation of higher realization in future. The release further stated that demand for mustard seeds has been steadily growing as the prices are getting support on robust demand after reduction in the import of sunflower oil due to ongoing war between Ukraine and Russia, which exports 70 per cent & 20 per cent of India’s requirement. Sunflower oil supply worries amid Ukraine-Russia War have resulted in firm demand for alternate oils like mustard, soy oil and CPO across the globe. Mustard seed prices are getting support from soaring edible oil complex, with the short-term range is seen between Rs 6,700 and Rs 7,300. A sustainable break of this range will result in a medium-term uptrend and sharp strengthening of prices in the near term, the release added. (UNI)
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