Mustard oil price: The annual production of edible oils in the country is about 75 lakh tonnes, half of which is met by mustard oil.
The market price of mustard is higher than the MSP.
The demand for Soyabean Degum and CPO was greatly affected before the Delhi High Court’s decision to ban adulteration of mustard oil with other oils. CPO as well as soybean degum prices closed showing losses amid a fall of two percent on the Malaysia Exchange.
Informed sources in the market say that from June 8, the government has imposed a mixture of oil like rice husk or soybean degum in mustard. The decision of the court is to come on a legal dispute related to this. But in the meantime, the demand for soybean degum and CPO oil was greatly affected in the market, which became the main reason for the decline.
The demand for crude oil is increasing
Sources said that the demand for pure crude oil is increasing continuously in the country. Traders are waiting for the decision of the High Court, which will determine the further business. At present, before the decision of the court, the prices of mustard oil and oilseeds remained at the previous level. Mustard oil prices have reached record levels. At the same time, farmers are also getting the best price of mustard seeds. They are continuously selling their produce at a higher price than the fixed MSP.
Expected record production of mustard
According to the Union Agriculture Ministry, a record 9.99 million tonnes of mustard production is estimated in the year 2020-21. This is the highest ever. Last year i.e. in 2019-20, there was a production of 9.12 million tonnes. According to the government, the average annual production of mustard from 2015-16 to 2019-20 has been only 8.30 million tonnes.
Why oil production has not increased till now
The annual production of edible oils in the country is about 75 lakh tonnes, half of which is met by mustard oil. The government had given permission to blend about 20 percent mustard oil with 80 percent cheap imported oils like rice bran, soybean degum. Sources said that probably due to this the production of mustard oil oilseeds could not increase in the country.
He said that now that farmers have started getting good prices of mustard and adulteration is going to be banned, then there is every possibility of bumper production of mustard.
Describing self-sufficiency in oilseeds production as the most important thing, he said that it is important to increase oilseeds production to meet the demand of oil cakes along with DOC for poultry feed and animal feed.
The wholesale price in the market was as follows- (Rs. per quintal)
- Mustard oilseeds – 7,350 – 7,400 (42 percent condition price) Rs.
- Mustard oil Dadri – Rs 14,700 per quintal.
- Sarson Pakki Ghani – Rs 2,360 -2,410 per tin.
- Mustard Kachchi Ghani – 2,460 – Rs 2,560 per tin.
with PTI input
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