Mustard seed prices remained above MSP in 2021-22 season

Due to higher market prices than MSP, procurement was nil in major producing states except MP


The Commission for Agricultural Costs and Prices (CACP) has stated that market prices of mustard seeds in India have remained well above the minimum support price (MSP) in the current season (Rabi marketing season 2021-22), and surged drastically to about 25% higher as compared to MSP during the last marketing season (2020-21). In RMS 2021-22, due to higher market prices than MSP, the procurement was reported as nil in major producing states except 0.68 metric tonnes (MT) in Madhya Pradesh.

Since RMS 2017-18, average market prices of rapeseed-mustard have remained below MSP. There was slight improvement in market prices during the last three seasons, but the subsequent increase in MSP widened the gap between average market price and MSP during these periods.

The gap between market price and MSP reduced to -9.2% during RMS 2020-21, as the market prices significantly increased in this period. During the current marketing season, the average market prices surged to a record high at Rs 6,454 per quintal as compared to MSP (Rs 4,650 per quintal), which is about 28% higher. The increase in market prices for these crops was mainly due to rising household demand for rapeseed-mustard oil.

In the major rapeseed-mustard producing states during the RMS 2021-22, the market prices remained above MSP. The gap between the market prices and MSP found to be widening since April 2021.

Among the states in reference, market prices in Madhya Pradesh and Rajasthan are reported to be higher than market prices reported in Uttar Pradesh during most of the period. The average difference between market price and MSP for RMS 2021-22 was more than 28% in both Rajasthan and Madhya Pradesh.

Market prices vis-à-vis MSP of rapeseed and mustard in major producing states in RMS 2021-22 (March-June 2021)

States Number of days market prices reported Number of days market prices were above or equal to MSP Average difference (%) between market price and MSP
Haryana 28 28 12.9
Rajasthan 117 117 28.7
Madhya Pradesh 120 120 30.1
Uttar Pradesh 120 120 23.6

Source: 1) AGMARKNET, Directorate of Marketing & Inspection, Department of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers Welfare, 2) Directorate of Economics & Statistics, Ministry of Agriculture & Farmers Welfare

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