Stock Market Tips- Mustard acreage likely to rise 6.5% in FY 2018-19
India’s Mustard land area is likely to expand by 6.5% on year to 6.7 mln ha in 2018-19 (Jul-Jun), as per the average estimation of 10 key edible oil companies and two brokerage houses.
The likely rise is seen on the back of a higher minimum support price and as farmers preferred sowing Mustard over Pulses in some parts of the country.
The Centre has fixed the minimum support price for Mustard at 4,200 rupees per 100 kg for 2018-19 compared with 4,000 rupees the previous year, have paved way for an increase in Mustard land area.
In Rajasthan, Mustard acreage is likely to increase to over 2.3 mln ha from 1.9 mln ha last year. The expected rise in the area is also because of a fall in temperatures in Rajasthan, the largest grower, which is favorable for the Oilseed.
This financial year, prices of Pulses have been largely down. Therefore, growers preferred to sow Mustard over Pulses in key growing areas including Rajasthan. Farmers across the country had sown Mustard across 5.79 mln ha as of Nov 29, up 4.3% from a year ago. Last year, Mustard acreage was at 6.7 mln ha.
With growers having an expectation that state governments might bring Mustard under the Bhavanatar Bhugtan Yojana, when fresh arrivals begin in full swing, might also encourage farmers to sow more of the oilseed, Mustard Oil.
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