3 ways to promote mustard oil

A national workshop on mustard was organised at Jaipur by Department of Agriculture, Government of Rajasthan earlier this month. One of the major recommendations at the workshop was to establish a mustard oil development board that would look into market updates, government notifications, market information updates, branding and promoting mustard oil.

Mustard oil processing in India is an unorganised business. There are 7,000-9,000 oil extracting units out of which only 20 per cent are registered in the organised sector. The industry has an installed capacity to process 23 lakh tonnes annually. Mustard oil consumption is increasing at a rate of 20 per cent every year. Demand for mustard oil comes from rural areas and is consistent owing to its multi-uses.

The rapeseed-mustard varieties/hybrids contain 40-45 per cent oil. But its recovery, realised by the mechanical crushing processor (oil expeller) – the largest segment of edible oil processing industries –, is up to 35 per cent only. Under this process of oil extraction, substantial amount of oil (5-10 per cent) is left in the rapeseed-mustardseed meal. Even if 3-4 per cent of this leftover oil can be extracted by modernising the mechanical crushing units, then at least 2-2.5 lakh tonnes additional edible oil could be made available.

The industry requires modern technology and also appropriate technology to reduce the content of erucic acid and pungency to make the oil more acceptable among consumers and tap export potential.

For the record, production of mustard/rapeseed, a winter crop cultivated in the northern States. was 8.028 million tonnes last year with the crop sown on 6.362 million hectares. Rajasthan is themajor producer contributing up to 47 per cent of the domestic production, followed by Madhya Pradesh (11.44 per cent), Haryana (12 per cent) and Uttar Pradesh (10.41 per cent).

There is a strong need to focus on marketing of mustard oil. It helps to segment and position the product in line with the need and demand. Marketing also creates a channel for products to reach consumers. Mustard oil has an extensive demand in northern and north-eastern States. Mustard oil fully meets domestic demand without need for imports non-existent. Rajasthan has over 20 markets for mustard, with Shriganganagar, Alwar, Jaipur, Kota, Udaipur, Hanumangarh, being the major ones. A major issue in marketing of mustard oil is that a large portion of it is sold in loose form; it is vulnerable to adulteration as it can be blended with cheaper oils such as palm oil. Mustard seeds are sometimes adulterated with weed seed Argimon Maxicana . Other edible oils such as soyabean and groundnut are positioned and marketed effectively. Therefore, consumers develop a preference to these oils.

The stickiness and low transparency of the oil reduces the acceptability of mustard oil among consumers. The unattractive packaging and poor branding by companies has also been an obstacle in realising the real value of the product. The unique pungency of the oil is a strength for domestic market but a barrier to exports. Different grades of oils with variation of pungency and viscosity for different markets is required.

The National Institute of Agricultural Marketing (NIAM) recommends a marketing strategy for mustard oils on the basis of a SWOT analysis conducted at the workshop. The strategies are:

Product diversification: Mustard oil is viscous, dark and highly pungent. Double refinement technique reduces its viscosity, makes it translucent and reduces its pungency. Therefore, it can be made available in two or more variants with different characteristics of colour, consistency and pungency. Further making it available in attractive bottles, tetra-packs and cans of different sizes will fetch different needs of the people. This will draw interests of the consumers towards the product.

Branding and positioning: Mustard oil is usually sold in unattractive plastic bottles with red label and cap, in canisters and tin cans and even in loose to customers. An attractive packaging and advertisement will make the oil acceptable among consumers. This branding can be developed by having some popular brand ambassadors for promotion of organised brands. Mustard oil is positioned as a poor man’s oil. A repositioning of oil highlighting its health benefits and taste will make the consumer preferthe oil.

Campaigning: Milk and egg promotion campaigns by the government have been successful in making these products more popular and acceptable among consumers. A campaign on the similar lines is needed for mustard oil to make people aware of the benefits and making it more acceptable among the consumers.

The writers are associated with NIAM, Jaipur. Views are personal.