SEA Seeks Indian Government Support to Aid Mustard Farmers
Mustard Farmers to Boost Rapeseed Meal Exports
The Solvent Extractors' Association of India (SEA) has requested government intervention to stabilize mustard seed prices and boost rapeseed meal exports. In a memorandum to various Union ministers, SEA President Sanjeev Asthana stressed the importance of providing strategic support to ensure fair prices for mustard farmers and address challenges in both the global and domestic oil meal markets.Mustard seed prices in India are currently ranging from $0,74-$0,75 per kg. These prices are close to the Minimum Support Price (MSP) of $0,71 per kg. SEA warns that prices could drop below the MSP due to prevailing market conditions, potentially disrupting sowing activities for the upcoming mustard crop.
Challenges in Rapeseed Meal Exports
India is a major global exporter of rapeseed meal, but exports have recently experienced a decline. In 2023-24, India exported 2.2 million tonnes (MT) of rapeseed meal. However, exports dropped by 22%, from 1.51 MT in April-October 2023-24 to 1.18 MT during the same period in 2024-25.This drop in exports is largely due to higher domestic prices for rapeseed meal, which are $40-$50 per tonne higher than international rates. The global glut of soybean meal, fueled by a record soybean production of 422 MT, has further pressured oil meal prices, including rapeseed meal.
Potential Bumper Harvest and Domestic Market Glut
A favorable monsoon and improved soil moisture levels have led to increased rapeseed and mustard planting. SEA forecasts a bumper harvest exceeding 13 MT this season. However, this potential surplus poses a challenge: excess rapeseed meal could face disposal issues due to competition from lower-cost alternatives, such as maize DDGS (dried distillers grain solids) and de-oiled rice bran meal.Additionally, the export ban on rice bran meal has reduced domestic demand for rapeseed meal in cattle and poultry feed formulations.
SEA’s Recommendations to the Government
To tackle these challenges, SEA has proposed several key measures:- Export Incentives for Rapeseed Meal
- Market Stabilization Measures
- Sustaining MSP for Mustard Seeds
Asthana emphasized the importance of exporting at least 2.5 MT of rapeseed meal this year. To avoid market instability and protect farmers' incomes.
Conclusion: Stabilizing the Market and Supporting Mustard Farmers
Rapeseed meal exports facing pressure and mustard seed prices at risk of falling below MSP. SEA’s recommendations aim to stabilize the domestic market and enhance India’s position in the global rapeseed meal market. Government intervention will be crucial in safeguarding farmers' interests, ensuring crushing parity, and maintaining stable edible oil supplies.Click here to reach our trading platfrom CMBroker
