India: Mustard production has increased for 2022

In a recent conference organized by the Central Organization for Oil Industries and Trade (COOIT) in Bharatpur, Rajasthan stated mustard production would be 11,1 million tons in 2022. The number has increased compared to last year’s 8,5 million tons. The figure is an estimated one for 2022 as, according to experts at the conference, it can range between 11 million tons and 12,5 million tons.

Current Scenario 

Despite the increase in the production of mustard, according to market experts, the price of edible oil in India will keep rising till May. Factors like the following will move the market upward for edible oil in India.

• The increase in the palm oil sales tax in Indonesia from 20 percent to 30 percent will cause a decline in India’s palm oil import.
• India typically imports 700 thousand to 800 thousand tons of palm oil every month from Indonesia. However, this will decrease to 450-500 thousand tons till May.
• Reports suggest that Indonesia can remove the sales tax imposed on palm oil export after Ramadan.
• The Indonesian government has increased the sales tax on exporting palm oil to reduce export. It will offer locals affordable palm oil during Ramadan.
• Even sunflower oil import is now restricted due to the war between Ukraine and Russia. India imports over 58 percent of the sunflower oil from these regions.
• As a result, India is looking towards Argentina to fulfill its demand, but it cannot export more than 25 to 30 thousand tons.

Future Trend 

According to market experts, the decrease in the import of the edible oil market will impact the price. Furthermore, it is unlikely the domestic production of mustard, soybean, peanut oil will be enough to overcome the difference.

Though there is an increase in mustard oil production this year, it is not enough to impact the market when the import is less. As a result, the price of all the edible oil in the market will be bullish until May, including mustard oil.

However, with the arrival of new mustard seeds in the market, there can be a slump, but as experts suggest, it will only be a temporary phase.

Price Trend

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