Mustard Acreage Down As Oct Rains Fail

New Delhi: A combination of moisture stress and high day temperatures has affected sowing of rapeseed-mustard, the country’s premier rabi oilseed crop. During the current rabi season, only 15.62 lakh hectares (lh) have been planted so far under rapeseed-mustard, against the corresponding coverage of 20.55 lh last year and 31.29 lh in 2005.

Acreages have dropped sharply in Rajasthan (to 11.90 lh from 14.78 lh in 2006 and 19.41 lh in 2005) and Madhya Pradesh (to 0.89 lh from 4.17 lh and 6.21 lh).

“The main reason is day temperatures, which have ruled above 35 degrees Celsius in Rajasthan throughout October. Only in the last 2-3 days, they have fallen to 30-32 degrees, which is optimal for seed germination,” said Vijay Data, Managing Director of the Alwar-based Vijay Solvex Ltd.

But even this could be undermined by the prevailing soil moisture conditions. While last year, rains around October 19-20 helped bolster the moisture regime as well as bring down temperatures, this time not a single drop fell during the whole month in Rajasthan, western Madhya Pradesh (MP), western Uttar Pradesh (MP) and Haryana. This is on top of a pretty disappointing south-west monsoon season in the entire North-West India belt.

“If somehow, we get rains in 15 days, there could be some pick-up in sowing. Otherwise, we could see a decline, especially in un-irrigated areas,” Data added. According to B.V. Mehta, Executive Director, Solvent Extractors’ Association of India, overall acreage might be 10 per cent lower this year.

Diversion

He also felt there could be some diversion of mustard area to chana (chickpea) in MP and UP and to barley in Rajasthan. Even in irrigated areas, farmers are more inclined to grow wheat. “If they get Rs 1,000 per quintal for wheat on a per hectare yield of 30-40 quintals, why opt for mustard, where the minimum support price of Rs 1,800 is on 10 quintals?,” Mehta pointed out.

The country harvested a record 81.31 lakh tonnes (lt) of rapeseed-mustard in 2005-06, with output falling to 70.97 lt in 2006-07. A further decline this year could be worrisome, more so in a scenario of spiralling global edible oil prices. Imported crude palm oil (CPO) is currently quoting at $915 per tonne (cost & freight, Mumbai), against $525 at this time last year. Landed prices of de-gummed soya oil and RBD palmolein prices have similarly spurted from $684 to $1,010 and from $552 to $970 a tonne, respectively.

Significantly, while international prices have risen by roughly 75 per cent, domestic rates have increased only by 10-15 per cent. Groundnut oil is now wholesaling at Rs 64,500 a tonne against last year’s corresponding Rs 56,200. The same is true for mustard oil (Rs 51,100 versus Rs 45,400), RBD palmolein (Rs 50,100 versus Rs 43,500) and sunflower oil (Rs 58,000 versus Rs 53,300).

The main reasons for domestic prices not shooting up much are the falling dollar and also the successive import duty reductions effected over the last one year. A reasonably bumper kharif groundnut crop has also helped soften prices somewhat.