Government Procurement of Mustard Remains Low Due to High Wholesale Market Prices

10-Apr-2026 02:02 PM

New Delhi. In the key wholesale markets of major producing states, mustard prices are currently trading above the Minimum Support Price (MSP); consequently, farmers are showing greater interest in selling their produce to traders and stockists rather than to government agencies.

The crisis in West Asia has driven up the cost of edible oils, creating an environment of rising prices and market firmness for oilseeds. As India is the world's leading importer of edible oils, fluctuations in international market prices have a direct impact on the Indian domestic market.

Since traders and stockists are receiving ample supplies of mustard, millers and processors are facing no difficulties in procuring the crop; as a result, the pace of mustard crushing and processing operations remains brisk. Farmers are currently earning a healthy income from the sale of their produce (mustard). Improved production of mustard oil is leading to a reduction in the country's reliance on imports of palm, soybean, and sunflower oils.

In Bharatpur—a leading trading hub within Rajasthan, the country's foremost mustard-producing state—the price of this vital oilseed has surged to approximately ₹7,000 per quintal, a figure significantly higher than the government's support price of ₹6,200 per quintal. Under these circumstances, why would farmers choose to sell their produce to government agencies? Under the Price Support Scheme (PSS), government agencies such as NAFED and HAFED are authorized to procure agricultural commodities only at the MSP, not at prices exceeding it.

Along with the top-producing states—including Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, West Bengal, and Gujarat—mustard arrivals remain robust across the various *mandis* (wholesale markets) of all producing regions. Furthermore, prices for the crop have appreciated by approximately 9 percent since the beginning of March.

The marketing season for mustard is generally considered to commence in March. Anil Chatar, Managing Director of Marudhar Trading Agency (Jaipur), notes that strong demand for both mustard oil and rapeseed meal is making crushing operations economically viable.