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Updated 06:40 IST 31 Jul 2014

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Know Mustard Seed Oil

Mustard/Rapeseed oil is the third largest edible oil produced in the world after Soy oil and Palm oil. At a production level of 13-14 million tons, it accounts for about 12% of the total World's edible oil production. However the export trade has come down, due to the dominance of other oils like palm and soya, which have become comparatively cheaper. The share has come down to almost 3% from the earlier figures of about 5% (of the total 30 million tons of edible oils traded in the export market annually).

The production and consumption of this oil has been growing at the rate of 4.65% and 5.03% respectively (compound growth over the last decade). Canada is the major exporter of seed and oil. Other major producers like China, India and EU are large consumers themselves. On crushing rapeseed or mustard, oil and meal are obtained. The average oil recovery from the seed is about 33%. The remaining is obtained as cake, which is rich in proteins and is used as an animal feed ingredient.

Global Situation

Global mustard oil production is estimated around 13-14 million tons with Canada dominating the global trade in mustard oil. Global output and consumption of mustard oil is growing at 4 and 5% per annum respectively. Global production of mustard seed is estimated around 38-42 million tons. China, European Union, Canada and India are leading producers of mustard seed. Global mustard seed trade is estimated around 5-6 million tons per annum. Global trade in mustard oil cake is 2.5 million tons.

Indian Situation

India is estimated to have a total mustard seed output of 5 million ton while oil is around 1.3 million tons. The country also generates 2.4 million tons of oil cake.

India is self-sufficient in mustard seed and oil as import and export of the commodity is almost non-existent. However India exports around 400,000 tons of oil cake. Cultivation of mustard is between October-November and February-March. Major growing areas are Rajasthan, Uttar Pradesh, and Haryana. Broadly seven varieties of mustardrapeseed are grown in India. Most popular varieties grown in Indian subcontinent are Brassica Juncea, Braassca campestris and Brassica napus L.

Being an important source of edible oil and feed meal to the country, mustard is undoubtedly the focus of Indian edible oil industry. The seasonal nature of the production of mustard seed and its high susceptibility to natural fallacies, wide consumption spread all through the year, the nature of the existing supply and value chain, the present dependence on the other edible oils and oilseeds traded in the country and abroad provides tremendous opportunity for 'trade' in this commodity. The ups and downs in production, arrivals in the mandi, international prices of other oilseeds and oils, heavy presence of speculators and stockists and the presence of a large unorganised crushing sector cause daily price volatility in prices.

Climatic conditions, especially progress of South-West monsoon is a major variable shaping the fortunes of mustard seed. Price of other domestic and global oil seeds would also have significant bearing on mustard seed prices. Major trading centres in mustard seed in the country are Jaipur, Hapur, Sriganganagar, Alwar in Rajasthan, Delhi, Mumbai and Kolkatta.