Suggestion to base MSP of oilseeds on oil recovery

03-Oct-2025 08:32 PM

New Delhi. In its latest price policy report for crops 2026-27, the Commission for Agricultural Costs and Prices (CACP) has suggested basing the minimum support price (MSP) of oilseed crops like mustard and safflower on their oil content.

This recommendation aims to encourage farmers to cultivate more oilseed crops with higher oil content and ensure better returns. Mustard is the most important oilseed crop of the Rabi season.

The report states that the Indian Council of Agricultural Research (ICAR) has developed several varieties of mustard and safflower with high yields and high oil content.

New techniques and processes for managing these crops have also been developed. Farmers need to be encouraged to expand their cultivation.

The oil content of mustard ranges from 34-38 percent on average, and that of safflower from 27-28 percent. This could be used as a base and the price of mustard with a 42% condition could be determined on this basis.

It has been suggested to set the minimum support price for every 0.25 percentage point increase above the benchmark oil content of 34% for mustard oil and 28% for safflower oil. This could significantly help in increasing the area and production of mustard, especially.

According to industry analysts, during the 2023-24 marketing season, approximately 16 million tonnes of edible oils were imported into the country, incurring an expenditure of approximately ₹1.32 lakh crore.

It is noteworthy that in the previous marketing season of 2021-22 (November-October), the expenditure on import of edible oils jumped to a peak of ₹1.57 lakh crore. Import expenditure on edible oils is also expected to remain high in the current marketing season,

which begins in November 2024 and ends in October 2025. Since May 2025, there has been a continuous increase in the import of edible oils.