Mustard seeds (Brassica Napus) also known as Rape, Oilseed rape, Rapeseeds and Canola are very widely cultivated throughout the world. Mustard seed is the third leading source of vegetable oil in the world after Soya bean oil and palm oil. It is world’s second leading sources of protein meal after soybean meal. Mustard seeds oil content varies from 33% to 46% and average oil recovery is around 32% to 38%. After oil extraction, the remaining part of the seed is used to produce rapeseed/mustard meal, an important sources of cattle and poultry feed. It is basically a winter crop and it requires a temperate climate to prosper. The planting season or the sowing period in India is during the Rabi season i.e. October to November. The crop starts flowering in the months of November, December, January and February. The harvesting period is from February to March. It needs a right proportion of rainfall during the sowing seasons of the crop.
Scenario of Mustard seeds
EU-27 accounts to about 34% of worlds RM seed production, others major producers are China (23%), Canada (19%), India (14%), Australia (3%), Ukraine (2%). India produces 5.5 million MT to7 million MT annually. About 0.15 million MT is retained for sowing and direct consumption as seed. leaving about 4.8-5.1 million MT for crushing and extracting oil. Domestically, Rajasthan produces 50% of RM seed, followed by Uttar Pradesh, Punjab & Haryana, Madhya Pradesh, West Bengal, Gujarat. The consumption of Mustard seed as a condiment is higher in India compared to that of the world. In India, mustard oil is consumed largely in Northern States as cooking oil and in Southern India it is used for preservation of food products.
Future Prospects of Mustard seeds
India is self-sufficient in mustard seed and oil as import and export of the commodity is almost non-existent. However India exports around 1 million MT of RM seed meal.Being an important source of edible oil and feed meal to the country, rapeseed is undoubtedly the focus of Indian oilseed industry. Efforts are being made both by the Government of India and the industry associations to increase production of this vital source of edible oil and meal.
Factor Influencing Prices
NCDEX Mustard Seed Futures
RMSEED have considerable price volatility in the physical market as well as futures. Exchange traded RMSEED futures are ideal for price risk management needs of the processors, traders, physical participants and end users. Those with no physical exposure to RMSEED trade can also benefited by undertaking 'cash-and-carry' arbitrage and 'calendar spread'. Speculators can take directional view on future prices and accordingly take positions in RMSEED seed futures. Jaipur is the basis centre for RMSEED. Alwar, Kota, Sriganga Nagar, Bikaner, Agra & Hapur as a additional delivery centres.
Scenario of Mustard seeds
EU-27 accounts to about 34% of worlds RM seed production, others major producers are China (23%), Canada (19%), India (14%), Australia (3%), Ukraine (2%). India produces 5.5 million MT to7 million MT annually. About 0.15 million MT is retained for sowing and direct consumption as seed. leaving about 4.8-5.1 million MT for crushing and extracting oil. Domestically, Rajasthan produces 50% of RM seed, followed by Uttar Pradesh, Punjab & Haryana, Madhya Pradesh, West Bengal, Gujarat. The consumption of Mustard seed as a condiment is higher in India compared to that of the world. In India, mustard oil is consumed largely in Northern States as cooking oil and in Southern India it is used for preservation of food products.
Future Prospects of Mustard seeds
India is self-sufficient in mustard seed and oil as import and export of the commodity is almost non-existent. However India exports around 1 million MT of RM seed meal.Being an important source of edible oil and feed meal to the country, rapeseed is undoubtedly the focus of Indian oilseed industry. Efforts are being made both by the Government of India and the industry associations to increase production of this vital source of edible oil and meal.
Factor Influencing Prices
- Various supply-demand factors revolving around the global edible oil scenario
- The seasonal nature of the production
- Wide consumption of its derivatives (oil and meal)
- The nature of the existing supply
- Value chain participant’s activities
- The present dependence on the other edible oils (Palm Oil, Soy Oil)
- Prices of Oilseeds traded in the country and abroad
- The ups and downs in production estimates declared by Govt., SEA, MOPA
- International prices of other oil seeds and oils
- Import duty on edible oils
- Heavy presence of speculators and stockiest
- The presence of a large unorganized crushing sector
- Stocks available at Exchange Warehouse
NCDEX Mustard Seed Futures
RMSEED have considerable price volatility in the physical market as well as futures. Exchange traded RMSEED futures are ideal for price risk management needs of the processors, traders, physical participants and end users. Those with no physical exposure to RMSEED trade can also benefited by undertaking 'cash-and-carry' arbitrage and 'calendar spread'. Speculators can take directional view on future prices and accordingly take positions in RMSEED seed futures. Jaipur is the basis centre for RMSEED. Alwar, Kota, Sriganga Nagar, Bikaner, Agra & Hapur as a additional delivery centres.
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