Source- Business Standard
While the 2nd advance estimates of agricultural output for 2013-14 had set the rapeseed-mustard crop at its second highest ever, the official estimates have now been revised downwards from 8.2 million tonnes (mt) to 7.8 mt. Rapeseed-mustard is a rabi crop, and the impact of unseasonal heavy rains hitting the standing crop in many parts of Uttar Pradesh, Rajasthan, Haryana, Madhya Pradesh, etc, in March had become clear only by May.
Low crop from the 2011-12 harvest led to rising prices through 2012, with moderation coming through last year due to high output in the 2012 winter harvest. Even though prices are now lower than the period September 2012-February 2013, they are nowhere close to the 2011 levels.
The retail price of packed mustard oil has declined from its peak of Rs 100.54 a kg in February 2013 to Rs 96.68 a kg in June. So far, the all-India average wholesale price is around Rs 9,000 a quintal currently. Sustained high demand and minimum support price hikes from Rs 1,565 a quintal in 2007-08 to Rs 3,000 a quintal in 2013-14 kept prices from falling significantly even in years with good output.