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Rapeseed & Mustard |
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Mustard and rapeseed (canola) is the third largest vegetable oil traded in the world, next to soyabean and palm oil. A genetically modified variety of rapeseed (Brassica sps.) that was developed by Canadian plant breeders specifically for its nutritional qualities and its low level of saturated fat is known as Canola, which is a short form of “Canadian oil”.
Nevertheless, Brassica species are cultivated since historic times, particularly in Asian countries. According to ancient Indian literature, cultivation of Brassica rapa was practiced since 1500 BC and seed of Brassica juncea was reported to have found in archaeological sites. On the other hand, the Chinese word for rapeseed was first recorded 2500 years ago, and the oldest archaeological discoveries reported to be dated back to 5000 BC.
Rapeseed oil reported to be used as a marine and industrial lubricant during World War II and consequently, the market for rapeseed oil plummeted in the post war period. Production of rapeseed has been rising rather steeply during the past two decades and has outpaced the production of other oilseeds including peanut, cottonseed and sunflower.
Economic Importance
Seed: Rapeseed and mustard is grown for its oil rich seeds. Apart from extracting oil, seeds are also used directly in the preparation of almost all Indian curries particularly in a process called “tadka”
Oil: Well-developed rapeseed seed contains 40 to 44% of edible oil.
Meal: Seed extract after recovering oil is used as a feed.
Recovery on average
Oil to Seeds– 33%
Cake to Seeds– 67%
Climate and Cultivation
Rapeseed and mustard can be cultivated in both tropical as well as temperate climates. Its growth is most vigorous in temperatures between 10°C and 30°C with an optimum temperature of around 20°C. Seed oil formation is optimum at a temperature of 10°C to 15°C. The crop is very sensitive to high temperatures as well as for frost at the time of flowering. Crop growth is healthy at a rainfall of 350-550 mm.
Rapeseed is normally cultivated as a rabi crop in India as it requires relatively cooler temperatures for seed setting and oil formation. Sowing normally starts in the month of November and the crop season spreads up to April.
Calendar of operations in India
World Scenario
World output of rapeseed and mustard has been increasing persistently and rather steeply during the past 15 years. The output has doubled from about 36 million tonnes in 2001-02 to 70 million tonnes in 2013-14. Production from European Union and Canada has risen steadily and reached to nearly 30% and 26% respectively of total world production. On the other hand, output from China has remained largely stable at around 12-13 million tonnes and consequently its share has declined to about 20% from about 31% a decade ago.
Table 1: Top five rapeseed producers, consumers and traders in the world
Source: USDA
The steep rise in production from Canada was primarily on account of significant expansion in area, which could have apparently been driven by a sharp rise in exports from Canada. While the production and consumption doubled during the past decade, trade has gone up by three times. During this period, exports from Canada rose by nearly four times.
Table 2: Trends in world production and consumption (million tonnes)
Source: USDA
Similar to production, world consumption pattern of rapeseed and mustard also doubled during the past 15 years primarily driven by the European Union, China and Canada. The European Union registered growth followed by Canada and China. Consequently, imports by China and the EU rose the steepest pushing them to top two positions replacing Japan and Mexico.
Domestic Scenario
 India is the fourth largest producer of rapeseed & mustard. Production trends over the past two decades indicated that there was a significant shift in production levels from about 5-6 million tonnes until 2002-03 to around 7-8 million tonnes during the past one decade. The jump in production was primarily on account of sharp rise in yields. In addition, there was a significant expansion in area under rapeseed during the same period.
Table 3: Trends in domestic production and consumption (000’tons)
Source: USDA
State-wise production
Rajasthan occupies the first place both in terms of cultivated area and production accounting for over 45% followed by Madhya Pradesh with 13%. Haryana and Uttar Pradesh occupy the third place contributing for 11% of total production each. Thus, the top four states produce about 80% of total rapeseed & mustard production in the country.
 Major Markets
Spot markets: Sriganganagar, Jaipur, Kota, Alwar, CharkhidadriandDelhi.
Futures markets: Mustard is traded in futures markets mostly in seed form. Major futures exchanges include Hapur, Hissar, Delhi, ACE, ICEX and NCDEX.
External Trade
India doesn’t export or import rapeseed and mustard seed.
Major export destinations: NA
Major import sources: NA
Factors Influencing Prices
Rapeseed and Mustard Oil
Table 4: Trends in demand and supply of rapeseed oil in the world (‘000tons)
Source: USDA
Table 5: Trends in demand and supply of rapeseed oil in India (‘000tons)
Source: USDA
Major Markets
Spot markets:
Sriganganagar, Jaipur, Kota, Alwar, AgraandKanpur.
Futures trading: NA
External Trade
Major export destinations: NA
Major import sources: Canada
Meal
Table 6: Trends in demand and supply of rapeseed meal in the world (‘000tons)
Source: USDA
Table 7: Trends in demand and supply of rapeseed meal in India (‘000tons)
Source: USDA
Major Markets
Spot markets:
Sriganganagar, Jaipur, Kota, Alwar, AgraandKanpur.
Futures trading: NA
External Trade
Major export destinations:
Bangladesh, China, Italy, Japan, Malaysia and Thailand
Major import sources: NA
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