The Solvent Extractors’ Association (SEA) of India has sought the Centre’s urgent intervention to arrest the collapse of mustard prices below the MSP (minimum support price).
In a letter to the Centre, SEA President, Ajay Jhunjhunwala, said prices of mustard have crashed below the MSP of ₹5,450 a quintal. At the same time, with arrivals increasing daily, a further drop in prices cannot be ruled out, he said.
Stating that the price drop is causing distress and financial loss to farmers, he said: “We fear if the trend continues, all our efforts at moving towards ‘aatmanirbharta’ in edible oils would be negatively impacted. We should not allow out mustard farmers to be discouraged.”
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He suggested that government agencies such as NAFED gear up to procure mustard and defend the MSP announced by the Government.
‘Imports having an impact’
He said unbridled palmolein (refined palm oil) imports had resulted in collapse of edible oil prices, which was impacting farmers at the peak harvest time.
“We feel that heavy imports is neither helping mustard farmers nor the Indian refining industry. It is contrary to our Prime Minister’s clarion call of ‘Make in India’,” he said.
Jhunjhunwala suggested that palmolein be immediately put under the ‘restricted’ category, or the differential between CPO (crude palm oil) and palmolein be raised to a minimum 20 per cent to discourage import of palmolein.
“This action will have a salutary effect on improving mustard prices and also help improve capacity utilisation of the domestic refining industry,” he said.
SEA hoped that these measures would be implemented on priority to protect oilseeds farmers and the domestic refining industry. The letter said these actions may also ensure limited buying by government agencies to defend MSP and help curtail losses.