Higher global edible oil prices and tighter import supplies are creating a positive momentum for India’s domestic oilseed sector, particularly mustard oil, according to Sanjeev Asthana, President of the Solvent Extractors’ Association of India (SEA).

In his monthly letter to the members of SEA on Wednesday, he said the domestic edible oil prices are moving in tandem with imported oil prices, thereby supporting mustard prices, which are currently ruling around ₹7,000 per quintal against the minimum support price (MSP) of ₹6,200 per quintal.

Encouragingly, April 2026 witnessed a record crushing of nearly 16 lakh tonnes (lt) of rapeseed-mustard, helping strengthen domestic edible oil availability while supporting better farmer realisations. He said the present trend is benefiting farmers through improved incomes and simultaneously reducing the Government’s burden relating to MSP procurement, storage, and carrying costs, thereby creating a positive situation for farmers, industry, and the overall edible oil economy.

“Sustained price realisations and improving market sentiment may also encourage farmers to expand oilseed acreage during the upcoming kharif season, supporting domestic production growth over the longer term,” Asthana said.

Sunflower strengthening

Stating that sunflower seed is also showing strengthening price alignment with MSP support, he said the Government has increased MSP to ₹8,343 per quintal in 2026-27 from ₹7,721 per quintal in 2025-26 marking an increase of ₹622 per quintal, thereby strengthening price assurance and encouraging farmers to expand sunflower cultivation alongside mustard.

He said the second all-India castor crop estimate by SEA for the 2025-26 season has reported production at 17.16 lt, higher than last year’s production of 15.90 lt. Acreage under castor has also increased by around 3 per cent to 8.90 lakh hectares, while productivity improved to 1,928 kg per hectare.

“The improved crop outlook reflects better farmer participation and favourable productivity trends, which are expected to support the availability of castor seed and related value-added products during the year,” he said.

Referring to the final crop estimates for rapeseed-mustard, he said the total production of rapeseed-mustard is estimated at 117.6 lt in 2025-26 compared to 115.2 lt last year.

Cottonseed supplies to rise

Terming the recently approved Mission for Cotton Productivity (2026-31) as another important development with long-term significance for the edible oil sector, he said higher cotton production will also lead to greater cottonseed availability and enhanced cottonseed oil production.

“In an import-dependent economy like India, every additional tonne of domestically produced edible oil contributes meaningfully towards reducing external dependence and strengthening national food security. The Mission, therefore, carries importance not only for the textile sector but also for India’s broader edible oil balance,” Asthana added.

--EOM--

Published on May 20, 2026