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Monday, August 31, 2009

Mustard-seed prices are expected to outperform all oilseeds on recedina arrivals and revival of mustard-meal exports

Rapeseed mustard seed is the most impor­tant oilseed in the domestic arena. The oil content of the seeds ranges from 38% to 46%, depending on the crop yield. Rape­seed and mustard crops are tropical as well as temperate and require relatively cool tem­peratures for satisfactory growth. In India, they are grown in the rabi season from Sep­tember-October to February-March. Rape­seed and mustard-seed crops grow well in areas with 25- to 40-cm of rainfall. There­fore, Rajasthan, Uttar Pradesh and Madhya Pradesh are the major producers of mustard seed. Together they account for almost 80%­85% of the total production.
The sowing acreage of mustard seed nor­mally ranges between 52 lakh hectares and 60 lakh hectares, depending on the price of the mustard-seed crop as against other al­ternates and favorable climatic conditions. But the strong returns given by the com­modity in the fiscal ended March 2009 (FY 2009) following a pathetic crop in FY 2008 along with favorable rainfall in major grow­ing areas such as Uttar Pradesh and Rajasthan resulted in sturdy gains in mus­tard-sowing acreage. Total acreage has been augmented by almost 13% from last year, standing at 65.80 lakh hectares mid January 2009. Total production is estimated up 12% to 62 lakh tonnes in FY 2009.

Following is the state-wise summary of mustard crop:
Rajasthan: The sowing acreage is hovering between 25 lakh hectares and 30 lakh hect­ares in Rajasthan over the last few years. Output ranges between 27 lakh tonnes and 33 lakh tonnes. The sowing regions of Rajasthan are Jaipur, Alwar, Sriganganagar and Jodhpur. Favourable monsoon condi­tions during the sowing period in FY 2009 coupled with remunerative prices of mus­tard seed throughout the year increased the total sowing acreage of the state 14% to 28.09 lakh hectares from FY 2008. The Ncdex September 2009 benchmark contract is expected to see buying at Rs 530-Rs 532 per 20 kg, while selling is likely around Rs 560-Rs 565 per 20 kg
Timely irrigation facilities in major dis­tricts such as Alwar, Kota and Sriganganagar along with favourable tem­perature during the crop formation stage

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