Nafed to procure mustard crop from March 10

The National Agricultural Cooperative Marketing Federation (Nafed), country's main mustard procurement agency, will start procurement of 2006-07 rabi mustard crop from March 10.

"We have been asked to begin procurement of fair and average quality mustard in places, where the price is lower than the minimum support price of Rs 1,715 a quintal government's announced," said Alok Ranjan, managing director of Nafed.

The federation, which has a stock close to 8 lakh tonne, halted sale of mustard on February 14. Nafed is hopeful of procuring 20 lakh tonne mustard this year at a minimum support price (MSP) of Rs 1,715 a quintal. It will be able to procure sizeable quantities as the MSP is significantly higher than the market price of Rs 1600-1650 a quintal.

It had procured 21 lakh tonne mustard in 2005-06 (at an MSP of Rs 1715) and 20.93 lakh tonne in 2004-05 (at an MSP of Rs 1700).

The Agriculture Ministry's estimate for rabi rapeseed-mustard production is 7.56 million tonne, down 7 per cent from last year's 8.13 million tonne. Farmers in Rajasthan, Uttar Pradesh and Madhya Pradesh have shifted from oilseeds to crops like wheat and chana due to bullishness in these commodities last year.