Oil seeds stock
The stock as on March 31 is seen at 35 mt. It has also kept the Kharif output on the higher side despite a decline in acreage. In the current Kharif (winter) season, the country is likely to have an estimated 13 mt of soybean and 8.5 mt of groundnut.
According to Government estimates, soybean production was 12.995 mt from an area of nearly 1.22 million hectares (mh) and groundnut output was 8,375 mt from about 4.9 mh during Kharif 2021.
While soybean and groundnut are two major Kharif oil seed crops, mustard is grown in winter starting from October and harvesting starts around March. The Government estimates show mustard production at record 11.746 mt from an area of nearly 9.2 mh (area was up 25 percent) in 2021-22. However, industry sources said the area was 8-8.1 mh last year and the output was also lower at around 1.10 mt.
Farmers had expanded the area under mustard in the 2021-22 season due to higher prices they received from the crop sown in the 2020-21 season. According to the Agmarknet Government portal, the average mustard price was $0,81/kg during the main arrival period March-May in 2022 in Rajasthan, which produces around 45 percent of the country’s total production in the oilseed, whereas the mandi rate was around $1/kg during sowing time of October-November 2021.
“Farmers thought they would receive $1 and carried away by the prevailing rate. Had there been futures contracts, they could have an idea about the likely prices in March when they harvest the crop,” said an official of a commodity exchange.
Source: Agmarketnet, Businessline & Agricultural Ministry of India