iGrain India - Request for Government Incentives to Boost Export of Rapeseed MealMumbai: The Solvent Extractors Association of India (SEAI), a key organization in the indigenous vegetable oil industry and trade sector, has requested the government to introduce incentives to enhance the export of mustard (rapeseed) meal. In a formal letter sent to various ministers, including the Union Agriculture Minister, Commerce and Industry Minister, Food, Consumer Affairs and Public Distribution Minister, and the Animal Husbandry, Fisheries, and Dairy Development Minister, the association highlighted the longstanding importance of India as a major exporter of mustard-rapeseed meal.
According to SEAI, in the financial year 2023-24, India exported approximately 22 lakh tonnes of rapeseed meal, benefiting mustard producers with better income prospects. However, the association noted a significant decline in exports during the current financial year (2024-25). Exports dropped by about 25% during the period from April to October 2024, with 15.10 lakh tonnes being exported in the same months last year, compared to only 11.80 lakh tonnes this year. This reduction has been attributed primarily to the high price of Indian rapeseed meal in the international market, making it less competitive globally.
The association further emphasized that the weakening demand for rapeseed meal is also linked to an increased global supply of soybean meal. Global soybean production is expected to reach a record high of 42.20 crore tonnes, a jump of 280 lakh tonnes compared to previous years. This surge in soybean production has been driven by increased crushing for soybean oil, particularly for use in the food industry and energy sector. Consequently, the higher availability of soy DOC (De-oiled Cake) has exerted downward pressure on the prices of all oilseed cakes, including rapeseed meal.
To support the mustard farmers and ensure a sustainable income, SEAI stressed the need for a strong export performance of mustard cake. Given the current challenges, the association believes that government intervention is essential to boost exports and stabilize market prices. The association emphasized that mustard is a key oilseed crop of the Rabi season, with sowing already underway. Therefore, to encourage farmers to increase the area under mustard cultivation, it is crucial that the market price of mustard remains favorable, which can be facilitated by promoting higher exports of rapeseed meal.
The association's letter urges the government to provide incentives such as export subsidies, financial support for marketing, or measures to improve the competitiveness of Indian rapeseed meal in the global market. Such steps, SEAI argues, will not only help mustard producers secure better prices but also promote the long-term sustainability of the industry.