The National Agricultural Cooperative Marketing Federation of India (NAFED), a formidable wing under the Union Agriculture Ministry, has unleashed a strategic plan for the Rabi marketing season 2023. They’ve set their sights on a substantial chunk of the mustard market, announcing a procurement drive at the minimum support price (MSP) of $0.65. per kg across the country’s principal mustard-producing states.
On September 18, the agency plans to issue a tender for the sale of mustard. Rajasthan will offer a maximum of 4,85,709.45 tonnes of this golden grain, while Haryana chips in with 3,41,758.49 tonnes. Meanwhile, Madhya Pradesh brings 1,67,090.96 tonnes to the table, Gujarat follows with 84,336.97 tonnes, and Uttar Pradesh presents 32,368.37 tonnes of mustard for the open market. These offerings will be up for grabs on the same day, September 18.
Mustard prices took a nosedive
With the advent of the new crop season, mustard prices took a nosedive in the wholesale markets, slipping well below the MSP. To bolster the spirits of mustard farmers, NAFED jumped into action, commencing purchases from these growers. Meanwhile, in neighboring Haryana, the provincial agency HAFED also joined the fray, procuring a substantial quantity of mustard. Together, these two entities amassed around 1.4 million tonnes of mustard, with NAFED’s share at 1.125 million tonnes and HAFED accounting for the remaining 0.275 million tonnes. Fortunately, the mustard market has experienced a resurgence, with wholesale prices trending upward. Thus, NAFED anticipates reaping profits by offloading its stock at a slightly elevated rate. Simultaneously, mustard oil prices have remained relatively stable, oscillating within a defined range.
Recognizing the escalating demand for edible oils during the festive season, NAFED has meticulously timed the sale of its mustard stock. In stark contrast to the past two seasons, where government agencies grappled unsuccessfully with the high market prices, this season showcases an opportune window for NAFED to thrive in the mustard market.