The elevated market prices of key oilseeds – soybean and mustard – may result in their higher acreage in the incipient kharif and next rabi seasons, processors and farmers said.
Currently, market prices of soyabean and mustard oil are ruling 20% to 25% above the repsective minimum support prices (MSPs).
Soybean and mustard seeds constituted 61% of the country’s total oilseeds production of 43.05 million tonne (MT) in the 2025-26 crop year (July-June). The local prices are guided by high global prices of several variants of cooking oils – palm, soybean and sunflower.
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Trade sources said that soybean is currently selling for around Rs 6,900/quintal in Indore, Madhya Pradesh, the hub of the country’s wholesale trade. The government has declared the MSP of Rs 5,708 per quintal for the current season.
In Bharatpur, Rajasthan, a major trading centre, farmers are currently selling mustard at around Rs 7,800/quintal, compared to the MSP of Rs 6,200/quintal set for the 2025-26 rabi season.
Global Triggers Driving
“The domestic industry is currently able to get oilseeds at parity with rise in global prices while the government also does not need to procure from farmers as the market prices are significantly higher than the MSP,” BV Mehta, executive director, Solvent Extractors’ Association of India (SEA), told FE. Mehta said that higher freight, insurance costs, depreciation of rupee and oil exporting countries diverting cooking oils for biofuel have impacted the landed cost.
The current landed costs of crude edible oils have increased by 16% (palm), 14% (soybean) and 18% (sunflower) to $1,230/tonne, $1,275/tonne and $1,430/tonne, respectively, compared to prices prevailing a year ago. The country imports edible oils from Indonesia, Malaysia, Thailand, Ukraine, Russia and Argentina.
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India imports around 57% of its edible oil requirement. Palm, soybean and sunflower account for the bulk of consumption of around 25-26 MT.
Kharif and Rabi Expansion
The sowing of soybean, a key kharif oilseeds crop, will commence in major producing states including Madhya Pradesh, Maharashtra, Rajasthan and Telangana by the end of current month.
“Significantly higher prices realised by farmers this season is expected to boost area under soybean in the current kharif season,” D N Pathak, executive director, Soybean Processors Association of India (SOPA), an Indore based trade association, said. According to the ministry of agriculture estimate, 12.33 million hectare (mha) area was under soybean 2025-26 kharif season while according to SOPA area under the oilseed variety was 11.23 mha.
Area under mustard, which has the biggest share of 32% in the country’s oilseed production, is likely to be expanded as farmers receive prices significantly higher than MSP in the ongoing season. Area under the mustard rose to 9.39 mha in 2025-26 rabi season from 9.22 mha in a previous season.
“Higher price being realised during current season would encourage farmers to expand area under mustard in the next rabi season especially in Uttar Pradesh where more farmers would opt for it instead of wheat,” Roop Singh, CEO, Uttan Mustard Producers Company, a FPO based in Astavan village, of Bharatpur, Rajasthan, said.
Sowing for the rabi season usually commences in October in Rajasthan, Haryana, Madhya Pradesh and Uttar Pradesh. Share of domestic edible oils includes mustard (40%), soyabean (24%) and groundnut (7%) and others.
TOPICSmustard oilThis article was first uploaded on June fourteen, twenty twenty-six, at twenty-five minutes past seven in the evening. © The Indian Express (P) Ltd