India increases state purchases of mustard and other oilseeds

The Indian government has approved large-scale purchases of oilseeds and pulses at Minimum Support Prices (MSP) in Haryana, Uttar Pradesh and Karnataka. Procurement will be carried out under the Price Support Scheme (PSS) to support domestic prices and protect farmers from being forced to sell their crops at low prices.

Mustard accounts for the bulk of the approved oilseed purchases. The government has approved procurement of 360.5 thsd tons in Haryana and another 530 thsd tons in Uttar Pradesh. This means around 891 thsd tons of mustard could be purchased in the two states alone. In Uttar Pradesh, the MSP has been set at INR 62 thsd per ton.

In Karnataka, the government has separately approved purchases of 6.9 thsd tons of safflower at an MSP of INR 65.4 thsd per ton. Overall, including pulses, more than 1.8 mln tons of agricultural commodities worth over INR 116.98 bln have been approved for procurement.

State purchases are expected to remove part of the oilseed supply from the open market and provide producers with guaranteed prices. Indian authorities view support for domestic oilseed production as one of the measures to strengthen the country’s food security.

Supporting domestic oilseed production is particularly important for India due to its heavy dependence on imported vegetable oils. Guaranteed purchases of mustard and other crops at MSP are aimed at supporting farmers’ incomes and providing incentives to maintain and expand oilseed production.

Tags: India, mustard