Market price of the oilseed is Rs 600/quintal more than minimum support price. |
The National Agricultural Cooperative Marketing Federation (Nafed), the government agency for price support scheme (PSS) in oilseeds, expects negligible procurement of mustard in the current rabi marketing season as open market prices continue to rule above the minimum support price (MSP). BEYOND THE REACH
In 2006-07, the federation was able to procure only 21,000 tonnes at a price of Rs 1,715
The open market price of mustard is ruling at Rs 2,300-2,400 a quintal, much above the MSP of Rs 1,800 a quintal
Mustard production in the 2007-08 rabi season is estimated at 7.07 million tonnes, down 5 per cent from last year's final estimate of 7.44 million tonnes | The open market price of mustard is ruling at Rs 2,300-2,400 a quintal, much above the MSP of Rs 1,800 a quintal. This could be the second consecutive year of low mustard procurement by Nafed. |
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"We are prepared to buy mustard wherever the market price falls below the MSP so that there is no distress selling by the farmers. However, market price is expected to rule at higher levels and we may not need to procure much. But it is a good sign for the farmers," said U K S Chauhan, managing director of the federation, after receiving the feedback from the main mustard producing states at the rabi season inter-state conference held here on Tuesday. |
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According to the second advance estimates released by the agriculture ministry last week, mustard production in the 2007-08 rabi season is estimated at 7.07 million tonnes, down 5 per cent from last year's final estimate of 7.44 million tonnes. |
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The decline is mainly due to a fall in mustard acreage by about 686,000 hectares and an adverse impact on crop due to cold weather in Rajasthan and Haryana. |
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However, the Central Organisation for Oil Industry and Trade (COOIT), a body of edible oil industry, claims the ministry's estimates of 7.07 million tonnes to be unrealistic considering the deficit in acreage. |
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Mustard output had touched a high of 8.13 million tonnes in 2005-06, after which production is seeing a downward trend on account of factors such as farmers' diversion to more remunerative crops. |
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The federation procured 2.09 million tonnes mustard in 2004-05 at an MSP of Rs 1,700 and 2.1 million tonnes mustard in the 2005-06 at an MSP of Rs 1,715 a quintal. |
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However, in 2006-07, the federation was able to procure only 21,000 tonnes at a price of Rs 1,715. It has a stock of about 15,000 tonnes now. |
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