Source: Business Standard
Despite the increased production, prices have generally trended upwards due to the high demand for oilseeds and policy of raising the minimum support price (MSP) to encourage domestic production. A 30 per cent import duty on oilseeds has checked imports, and for rapeseed-mustard, the MSP has increased from Rs 1,565 a quintal in 2007-08 to Rs 3,000 a quintal in 2013-14. In addition to the uptrend, low output in 2011-12 led to a price spiral last year.
The 4th Advance Estimates for 2012-13 has put production at 78.2 mt, 18.4 per cent higher than the previous year’s when output had fallen considerably. This has helped in moderation in prices. However, with high demand pressures, the average all-India retail price of packed mustard oil has been steadily increasing from Rs 63.05 a kg in May 2010 to reign above Rs 100 a kg. for the period August 2012 to May 2013. Since then, with arrivals of the crop, prices have moved down, albeit marginally, with the average retail price now at Rs 97.23 a kg in August.
IPM data till week ending September 7. The Indicus Price Monitor, a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of the IPM differ from the corresponding Wholesale Price Index (WPI). However, broad trends are in sync with each other.