Mustard seeds are yellowish colored, small seeds mainly used as a spice in many countries. The seeds can come from three different plants: black mustard, brown Indian mustard, and white mustard. Rapeseed belongs to the plant of the same genus and also known as canola in many countries.
Rapeseeds and mustard seeds are sources of rapeseed/mustard seed oil and oilcake. Yellow colored oil is obtained by extraction process of the crushed rape/mustard seeds. During the production of oil, pressed cakes of the seeds are left over that have some amount of oil content. These cakes are distilled to make oil cakes, which serves as an animal feed.
Mustard/Rapeseed cultivation is done widely throughout the world. It is basically a winter crop and it requires a temperate climate to prosper. The planting season or the sowing period in India is during the Rabi season i.e. October to November. The harvesting period is from February to March. The rapeseed/mustard crop actually acts as a very good cover of soil in winters.
Global production of rapeseed increased from 37.33 million tons in 2000 to 59.38 million tons in 2009. It has been growing at the rate of 6.55% during the last 9 years' period (over 2000-2009 period). The major contributors to global rapeseed production are China, India, EU-27, Canada and others with a share of 22%, 11%, 36%, 20% and 11% respectively.
Consumption of rapeseed in the World has increased from 31.33 million tons in 1997 to 59.16 million tons in 2009, growing at a rate of 7.4 % compounded annually during the period. China has been the biggest consumer of rapeseed.
Annual export trade of rapeseed stands at around 12 million tons. It has been growing at the rate of 14.23% (annually compounded 1996-2009), major share being contributed by Canada.
Rapeseed has been a traditionally important oilseed crop in the country. Indian rapeseed production has been fluctuating in the range of 5.5-6.5 million tons over the last few years. About 0.15 MT is retained for sowing and direct consumption as 'seed', leaving about 5.35-6.35 million tons for crushing and extracting oil. 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.
Rajasthan and Uttar Pradesh are the major rapeseed producing States in the country. Together, they produce about 90% of the produce. Hapur, Alwar, Bikaner and Jaipur are the active spot markets of rapeseed in the country.
Being an important source of edible oil and feed meal to the country, rapeseed is undoubtedly the focus of Indian oilseed industry. Efforts are being made both by the Government of India and the industry associations to increase production of this vital source of edible oil and meal.
Factors influencing Rapeseed-Mustard seed prices
- Various supply-demand factors revolving around the global edible oil scenario
- Influence of internationally traded substitutes (Palm, soya oil)
- The nature of the existing supply
- The presence of a large unorganized crushing sector
- Government policies and intervention.
- The ups and downs in production, arrivals in the mandis, international prices of other oilseeds and oils