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It is expected that the areas under rapeseed and mustard cultivation in India will be reduced despite high prices. This is due to above-average temperatures during the sowing season leading farmers to switch to crops less susceptible to heat, but still profitable. The country, being the world's largest importer of vegetable oils, may need to increase purchases of vegetable edible oils such as palm, soybean, and sunflower to meet growing demand.
Anil Chatara, a leading trader from the state of Rajasthan, the largest producer of rapeseed in the country, notes that temperatures remained above normal in October and November, negatively affecting the yield. He points out that in many places early crop plantings did not germinate. The Meteorological Department reports that in key rapeseed production areas, temperatures have been 2-7 degrees Celsius above normal in recent weeks. Farmer Vedpal Tyagi says that in October he reduced the rapeseed sowing area from 20 to 10 acres.
According to government data, as of November 21, the rapeseed sowing area in Rajasthan was 3.12 million hectares, which is 7.2% less than last year. According to Chatara, higher temperatures have also affected plantings in neighboring states of Uttar Pradesh, Madhya Pradesh, Gujarat, and Haryana, which may lead to a 10% reduction in the overall rapeseed sowing area compared to last year.
After New Delhi raised the minimum support prices for farmers by 5.3% to 5950 rupees (70.61 dollars) per 100 kg, the industry expected an increase in rapeseed sowing areas. However, farmers are concerned about prices as soybeans, the main oilseed crop grown in summer, are sold at lower prices than the minimum price set by the government. It is known that vegetable oil imports to India during 2023/24 MY (November-October) decreased by 3.09%, amounting to 16.2 million tons. This is due to the growth in domestic oilseed production and a decrease in demand due to price increases. Last year, imports amounted to 16.47 million tons.
