Mustard acreage may drop 10%

Rapeseed/mustardseed acreage during the ongoing rabi season is likely to decline by 10 per cent as farmers are shifting to wheat and other foodgrains for better realisation.

Sowing is also likely to decline dramatically, up to an estimated 25 per cent, if there are no rains in the next one week. Weather remained unfavourable for rapeseed/mustardseed planting.

The main reason for the farmers shifting away from rapeseed/mustardseed is the increase in the minimum support price (MSP) of wheat (up to Rs 1,000 a tonne with additional bonus expectations).

Besides, about 60 per cent area under oilseed cultivation is irrigated. But repeated irrigation proves a little costlier for the farmers, thus affecting their price realisation.

The other reason for the shift away from rapeseed may be the farm practice, where oilseed crop is replaced by another crop in the next season. This simply means that farmers should move to foodgrains in case oilseeds were planted in the previous season.

Rapeseed/mustardseed sowing begins in the second fortnight of October and harvesting commences by early February.

According to Ramesh Garg, chairman of K S Oils, a leading mustardseed crusher in the country, sprouts will be damaged more in absence of rains and therefore, the output will decline drastically even if farmers sow through private irrigation facilities.

K S Oil estimate a total rapeseed/mustardseed output at 50 lakh tonnes this rabi season as against 67 lakh tonnes last season. In the worst scenario, the output will slump to 45 lakh tonnes out of which K S Oil is targeting to procure 3.5 lakh tonnes this year for crushing. The company procured 1.80 lakh tonnes last season.

According to the latest study by the Solvent Extractors' Association of India (SEA), prices of rapeseed/mustardseed rose by 35 per cent to Rs 1,800 a quintal in the last six year as against 61 per cent increase witnessed in the wheat MSP announced by government.