Mustard farmers seek help as prices fall below MSP

Mustard farmers are staring at a financial loss as the price of mustard seeds has fallen below the minimum support price (MSP) of ₹5,450 per quintal in market yards.

This has prompted the edible oil industry to seek immediate steps to arrest the fall. The industry has suggested that government agencies like the National Agricultural Cooperative Marketing Federation of India (Nafed) be asked to procure mustard seeds and defend the MSP. The industry also wants refined palm oil to be immediately put under the restricted category, or the differential between the crude and refined palm oil be raised to a minimum of 20%, to discourage import of refined palm oil, which hurts local mustard farmers.

Ajay Jhunjhunwala, president of the Solvent Extractors Association of India, said: "Unbridled imports of refined palm oil is resulting in collapse of edible oil prices which is impacting marketing of mustard at peak harvest time. Heavy imports of refined palm oil is neither helping the mustard farmers nor the refining industry."

The government's second advance estimate predicts a record output of 12.8 mt of mustard seeds against 11 mt last year.