Mustard output may touch 120 lakh tonnes this year; futures trading be allowed: SEA

Indias mustard production may reach a record 120 lakh tonnes in the current rabi season on higher area under coverage, according to industry body SEA.The Solvent Extractors Association of India SEA also demanded that the government should allow restart of futures trading of mustard seeds and its derivatives.


PTI | New Delhi | Updated: 20-01-2022 18:47 IST | Created: 20-01-2022 18:47 IST
Mustard output may touch 120 lakh tonnes this year; futures trading be allowed: SEA
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India's mustard production may reach a record 120 lakh tonnes in the current rabi season on higher area under coverage, according to industry body SEA.

The Solvent Extractors' Association of India (SEA) also demanded that the government should allow restart of futures trading of mustard seeds and its derivatives. Mustard production stood at around 86-87 lakh tonnes in the 2020-21 crop year (July-June), according to trade estimates. However, the government estimated output at 101 lakh tonnes.

''Even though the much debated and discussed National Mission on Oilseeds has still not seen the light of the day area coverage under Rabi rapeseed-mustard is nearly up by 50 per cent,'' SEA President Atul Chaturvedi said in a letter to its members. Against normal area of 61.5 lakh hectares (5-year average), he said the coverage is reported at 90.5 lakh hectares as on January 13. The higher price during the sowing period of the current rabi season and favourable weather were positive developments for shifting area from wheat to mustard. ''We should not be surprised if mustard production during the current year touches the magical figure of 120 lakh tonnes,'' Chaturvedi said. He stressed on restarting the future trading in mustard seeds and its derivatives.

In October 2021, SEBI had suspended various futures and options trade in many agriculture commodities including mustard seed with the expectation that it will check the runaway prices and inflation. ''But in the last three months, the prices have not come down and there is no impact of suspending futures trading to check the rising prices and has not helped in curbing the inflation,'' Chaturvedi said. The very purpose of suspension of future contract in mustard seed is not served, he added. ''As huge new mustard crop arrival will start from early March, the SEA has requested the government and SEBI to revisit the earlier decision of suspending the futures contract for mustard seed and restart it at the earliest to enable farmers get a fair price for their produce in new season,'' the SEA president said. Earlier, Central Organization for Oil Industry and Trade (COOIT) President Babulal Data had also projected that mustard seed output might rise to a record 100-110 lakh tonnes during the rabi season of the 2021-22 crop year.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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