SEA Urges Policymakers To Allow Export Of Mustard Oil In Bulk

Solvent Extractors Association (SEA) has noted in a latest update that it has sent a memorandum to Ministry of Commerce and Ministry of Agriculture, to allow the export of Rape/Mustard Oil in bulk to support the Mustardseed price in domestic market and Farmers by removing conditions of maximum 5kg pack size and MEP of US $ 900. It noted that only rapeseed oil/mustard oil is subjected to the condition of maximum pack size 5 kgs for export. All the other vegetable oils are permitted to be freely exported irrespective of pack size. This condition on rapeseed oil/mustard oil is very detrimental to its trade in the international market. It also adversely affects the farm price of rapeseed/mustard seed and thus decreases the earning potential of rapeseed/mustard seed farmers.

 

SEA further noted that this year as per first announcement of Ministry of Agriculture country would be harvesting record Rapeseed/Mustardcrop to the tune of about 93.0 lakh tones, which has put the tremendous pressure on price of mustard seed and the farmers are now realizing Rs.3,900 -4,000/-per quintal (basis 42% oil) against MSP of Rs.4,425/-per quintal. This may go down further to Rs.3,400/3,500/-per quintal with the arrival pressure post Holi Festival. SEA urged that to boost the price of Rapeseed/Mustardin domestic marketa nd to support the farmers, the Ministry of Commerce should consider to lift the condition of 5 kgs.pack size and MEP for export of Rape/Mustard oil.

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