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India holds a 20% share of world rapeseed area
but its production share is only around 10%.
The country is self-sufficient in rapeseed: no
rapeseeds are traded internationally. About 8%
of the domestic meal production is exported.
Rapeseed oil imports are hampered by a high tariff
protecting India’s domestic crushing industry.
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In India, rapeseed is extensively cultivated in
Rajasthan, Uttar Pradesh, West Bengal, Madhya
Pradesh and Punjab. Adequate rains during the
critical growth stages in most crop growing regions
are expected to lead to increased MY 2003/04
oilseeds production, estimated at 27.6 million
tons. Rapeseed sowing areas is estimated at 6.6
million hectares, which is expected to lead to
a higher MY 2003 rapeseed production estimated
at 5.8 million tons. Even though there were more
imports of edible oils during MY 2003, rapeseed
prices are still at a record high of$ 485 – 490/ton,
compared with year ago prices of $375 – 385/ton,
due to bullish world edible oil prices and increased
export demand for rapeseed meal. The World Rapeseed
price rose by
33% in 2002/03
as rapeseed supply
fell short of
demand because
growers reduced
the harvested
area for the
third consecutive
year. A strong
production response
in 2003/04 leads
to a temporary
price reduction
before the rapeseed
price settles
into a flat path.
To know more about investing in Commodities contact
: commodities@motilaloswal.com
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