Indian farmers shift from rapeseed to other crops as temperatures soar
Maximum temperature above normal in key producing states
Higher temperatures thwart germination, wilt newly planted crop
Rajasthan rapeseed-planted area down 7.2% so far vs year ago
By Rajendra Jadhav
MUMBAI, Nov 25 (Reuters) -Rapeseed and mustard planting in India is set to drop despite higher prices, as above-average temperatures during the sowing season prompt farmers to switch to crops less affected by heat and which offer equally good returns, industry officials told Reuters.
Lower production of India's main winter-sown oilseed crop could force the country, the world's biggest importer of vegetable oils, to increase expensive overseas purchases of cooking oils such as palm oil, soyoil and sunflower oil to meet rising demand.
Temperatures stayed higher than usual in October and in the first three weeks of November, which was not good for the crop, said Anil Chatar, a leading trader based in Jaipur in the north-western state of Rajasthan, the biggest rapeseed producer.
"In many places, the early-planted crops didn't germinate, so farmers ended up switching to different one," he said.
In Rajasthan, the maximum temperature in key producing districts was 2 to 7 degrees Celsius above normal in the last few weeks, weather department data showed.
Vedpal Tyagi, a farmer from Dholpur, Rajasthan, said he planted rapeseed on 15 acres (6.07 hectares) of his land in October, but on five of those acres, the crop either failed to germinate properly or wilted soon after germination.
"Rather than replanting rapeseed, I went with wheat and potatoes," Tyagi said. "This year, I cut down the rapeseed area to 10 acres instead of the usual 20 acres."
In Rajasthan, rapeseed was planted on 3.12 million hectares of land as of Nov. 21, down 7.2% from a year ago, government data showed.
Higher temperatures also affected planting in neighbouring states such as Uttar Pradesh, Madhya Pradesh, Gujarat and Haryana, which could reduce the total area under rapeseed by 10% from last year, said Chatar.
The industry was expecting a larger area under rapeseed after New Delhi increased the minimum support price by 5.3% to 5,950 rupees ($70.61) per 100 kg.
However, farmers are concerned about the pricing because soybean, the main summer-sown oilseed, has been fetching lower prices than the government-set floor price, said Chatar.
Rapeseed competes with wheat and chickpea, prices of which have jumped in recent months, spurring farmers to raise acreage for those crops by cutting the area devoted to rapeseed, said Krishna Khandelwal, a trader based at Niwai, Rajasthan.
India meets nearly a third of its cooking oil demand through imports of palm oil, soyoil and sunflower oil from Malaysia, Indonesia, Brazil, Argentina, Ukraine and Russia, according to the trade ministry.
Reporting by Rajendra Jadhav. Editing by Kate Mayberry
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
