Nafed set to revive mustard oil brand

The National Agricultural Cooperative Marketing Federation of India (Nafed) will initiate processing of about 4 lakh tonne mustard to oil in a fortnight, managing director Alok Ranjan said.

"We will be producing about 1.3-1.4 lakh tonne of mustard oil and sell it by reviving our Nafed brand," Ranjan said. The federation's proposal to re-launch of its mustard oil brand has been cleared by the agriculture ministry.

"Tenders will be issued for crushing as well as appointing distributors and the whole scheme should be finalised in 10 days," Ranjan said.

With the federation being the only one in the market with such a huge stock, its mustard sale has picked up since the last one month. The federation, till today, has about 80,000 tonne of mustard and is now getting a price of Rs 1,655-1,660 per 100 kg. "We feel the price is good and the festive demand is picking up."

Estimates peg the total sale by Nafed, till the next mustard crop arrive at around 8-9 lakh tonne, thereby leaving the federation with a huge carryover stock, the official added.

Further, Nafed's mustard procurement this year allowed good remuneration to farmers and did not allow prices to crash despite good crop. This is likely to encourage farmers to sow mustard in the next season. also the minimum support price of mustard has been increased by Rs 15 to Rs 1,715 per 100 kg.

Following this, the next mustard crop, to be sown in November-December and harvested in March-April, was likely to be in tune with the crop earlier this year, if not a bumper one.

Market players expect demand for mustard to come in despite huge import of other edible oils. This was largely owing to a degree of non-exchangeability element with respect to mustard's pungency and colour.

Nafed has procured mustard at an all-time high of 20.9 lakh tonne at a minimum support price of Rs 1,700 per 100 kilograms in 2005-06 .

The procurement was made under price support scheme under union government. The government had initiated procurement of mustard to support prices following a bumper crop.

As per official estimates, the country's total mustard output in 2004-05 (July-June period) was around a record 7.64 million tonne, up 23 per cent from a year earlier. Industry estimates, however, peg output at 6.4 million tonne.

Agency to aid cotton, soybean prices: Nafed has been asked to intervene and procure 2.5 lakh tonne of soybean at minimum support price levels, Ranjan said. This was a government's bid to keep prices firm. Nafed will also procure cotton, he added, but the quantum is yet to be decided.

"We will initiate procurement in Punjab, Haryana, Gujarat and Maharashtra in the next fortnight or so," he said.