Mustard Sowing Decline in India Due to Heat and Price Concerns
Mustard Sowing Decline in India
Despite high prices, mustard sowing in India is declining. This trend is primarily due to above-average temperatures during the sowing season. Industry officials report that these conditions have led many farmers to switch to crops that are less affected by heat, but offer similarly good returns. This reduction in mustard production, India’s main winter oilseed crop, could force the country—the world’s largest importer of edible oils—to increase imports of oils like palm oil, soybean oil, and sunflower oil to meet rising domestic demand.High Temperatures Impacting Crop Growth
Anil Chhatar, a prominent trader based in Jaipur, Rajasthan (the largest producer of mustard), explains that temperatures in the first three weeks of October and November were well above normal. This heat has hindered mustard crop growth. "In many areas, crops sown early did not germinate properly, which led farmers to replant with other crops," said Chhatar. Recent data from the weather department shows that maximum temperatures in key mustard-producing districts in Rajasthan were 7°C higher than normal in recent weeks.Farmers Adjusting to Challenging Conditions
Vedpal Tyagi, a farmer from Dholpur, Rajasthan, shared his experience with crop failure. “I planted mustard on 15 acres of land in October, but 5 acres either didn’t germinate or dried up quickly,” Tyagi said. As a result, Tyagi turned to wheat and potatoes, planting them on the affected land instead of mustard. This year, he reduced his mustard acreage to 10 acres from the usual 20 acres.Reduced Mustard Sowing Area in Key States
Government data shows that 3.12 million hectares of mustard were planted in Rajasthan by November 21. This figure is 7.2% lower compared to the same time last year. Chhatar added that the high temperatures also affected planting in neighboring states like Uttar Pradesh, Madhya Pradesh, Gujarat, and Haryana. As a result, the total area under mustard sowing is expected to be 10% lower than last year.Price Concerns Among Farmers
The industry had hoped for a larger area under mustard this season after the government raised the minimum support price (MSP) by 5.3%, bringing it to USD 0.70 per kg. However, farmers remain concerned about prices, especially since soybean, another major oilseed, is being sold below the government-set MSP. Prices for wheat and gram have recently risen, which has prompted farmers to shift acreage to these crops instead of mustard, according to Krishna Khandelwal, a trader in Niwai, Rajasthan.Conclusion: Market Shifts and What’s Next for Mustard Production
The high temperatures and rising prices are reshaping the mustard production landscape in India. With farmers cutting back on mustard acreage and shifting to more heat-tolerant crops, India may see a rise in imports of edible oils. As the mustard crop shrinks, it might be wise to keep an eye on global oilseed markets and plan for potentially higher prices for oils like palm oil and sunflower oil in the coming months. For now, traders may want to consider holding off on large mustard purchases until production figures become clearer.Click here to reach our trading platfrom CMBroker