India is expected to harvest a record rape and mustard crop this year, thanks to late rains in the kharif season amd showers during November. |
More land was also brought under these crops by farmers following the increased 'minimum support price' (MSP) promised by governments. |
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Solvent Extractors' Association of India (SEA) executive director B V Mehta said the increase in MSP to Rs 1700 per quintal, for rape and mustard encouraged farmers to expand the area under cultivation . |
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"Rape and mustard harvest is expected to reach 70-75 lakh tonnes from last years' 65 lakh tonne, provided the weather is favourable", said Mehta. |
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The bumper harvest may hit edible oil prices and hurt farmers. Futures quotes for rape and mustard for March-April was around Rs 1550 per quintal. |
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Intervention was urgently needed to ensure farmers got remunerative prices for their harvest, said Mehta. |
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"SEA has sought the government's help in this regard", he claimed. |
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The Union government has directed apex cooperative marketing body, National Agricultural Cooperative Marketing Federation of India ltd. (NAFED), to scale up its operations in the harvest season. |
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Mehta said NAFED could procure the crop at MSP of Rs 1700 per quintal. |
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Alternatively, NAFED could intervene to hold the price of edible oil at around Rs 400 per 10 kg of rape and mustard oil, which would give farmers a good price for the oilseed. |
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"SEA has informed NAFED of the possible problem ahead and expect it to move fast ", added Mehta. |
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According to him, NAFED could both procure rape and mustard at MSP and hold the edible oil price line through market operations. |
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"Increase in import duty on palm oil could be considered to encourage farmers to grow more oilseed, he added. |
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