Boosting Mustard Purchases at MSP for Farmer Prosperity in India
Mustard Farmers Struggle Despite Record Production
Mustard farmers in India consistently face challenges in securing fair prices for their produce. Even with record production this year, prices remain below the Minimum Support Price (MSP). The MSP for mustard in 2024-25 is $3,39 per kg. Yet farmers are forced to sell between $2,70 and $3,12 per kg. This discrepancy highlights the need for increased government intervention to support mustard farmers.Despite the high domestic consumption of mustard oil, accounting for 40% of edible oil usage, prices remain low due to cheaper imported edible oils. Currently, government intervention through the PM Annadata Aay Sanrakshan Abhiyan (PM ASHA) aims to purchase 25% of mustard production at MSP. However, only 9% of the total production has been procured by government agencies so far, leading to increased challenges for farmers.
Impact of Import Policies and Proposed Solutions
India imports over 60% of its edible oil needs, primarily sunflower oil from Malaysia and Indonesia and soybean oil from Brazil. The lack of import duties on crude palm oil, soybean oil, and sunflower oil exacerbates the problem. Reduced import duties on refined palm oil and agri cess have further increased the competition for domestic mustard oil. This has led to mustard prices remaining below the MSP despite record production.To mitigate this, increasing the government procurement limit under PM ASHA from 25% could provide much-needed relief. Approval from the Union Agriculture, Commerce, and Finance Ministers is essential for this change. Additionally, distributing mustard oil through the Public Distribution System (PDS) could help stabilize prices and support farmers.
Conclusion
The persistent challenges faced by mustard farmers, despite record production, underline the necessity for enhanced government intervention. Increasing the procurement limit under PM ASHA and adjusting import policies are crucial steps to ensure fair prices and support for mustard producers.