Mustard/Rapeseed oil is the third largest edible oil produced in the world after Soy oil and Palm oil. At a production level of 13-14 million tons, it accounts for about 12% of the total World's edible oil production. However the export trade has come down, due to the dominance of other oils like palm and soya, which have become comparatively cheaper. The share has come down to almost 3% from the earlier figures of about 5% (of the total 30 million tons of edible oils traded in the export market annually).
The production and consumption of this oil has been growing at the rate of 4.65% and 5.03% respectively (compound growth over the last decade). Canada is the major exporter of seed and oil. Other major producers like China, India and EU are large consumers themselves. On crushing rapeseed or mustard, oil and meal are obtained. The average oil recovery from the seed is about 33%. The remaining is obtained as cake, which is rich in proteins and is used as an animal feed ingredient.
Global Situation
Global mustard oil production is estimated around 13-14 million tons with Canada dominating the global trade in mustard oil. Global output and consumption of mustard oil is growing at 4 and 5% per annum respectively. Global production of mustard seed is estimated around 38-42 million tons. China, European Union, Canada and India are leading producers of mustard seed. Global mustard seed trade is estimated around 5-6 million tons per annum. Global trade in mustard oil cake is 2.5 million tons.
The global production of rapeseed and its oil is around 38-42 and 12-14 million tons. China (11-12 million tons), EU (10-13 million tons), Canada (6-7 million tons) and India (4-7 million tons) are the world's major producers. 4.5-6, 1.5 and 2.5 million tons of seed, oil and meal are traded globally.
Canada (2.5-3.5 million tons) and Australia (1.5 million tons) are major exporters, while Japan (2 million tons) and Mexico (1 million tons) are the major importers of seed. Canada is the major exporter of oil too. US is the major importer of oil.
Indian Situation
India is self-sufficient in mustard seed and oil as import and export of the commodity is almost non-existent. However India exports around 400,000 tons of oil cake. Cultivation of mustard is between October-November and February-March. Major growing areas are Rajasthan, Uttar Pradesh, and Haryana. Broadly seven varieties of mustard rapeseed are grown in India. Most popular varieties grown in Indian subcontinent are Brassica Juncea, Braassca campestris and Brassica napus L.
Being an important source of edible oil and feed meal to the country, mustard is undoubtedly the focus of Indian edible oil industry. The seasonal nature of the production of mustard seed and its high susceptibility to natural fallacies, wide consumption spread all through the year, the nature of the existing supply and value chain, the present dependence on the other edible oils and oilseeds traded in the country and abroad provides tremendous opportunity for 'trade' in this commodity. The ups and downs in production, arrivals in the mandi, international prices of other oilseeds and oils, heavy presence of speculators and stockists and the presence of a large unorganized crushing sector cause daily price volatility in prices.
In North India, mustard oil is also used for rub-downs and massages (see ayurveda). To get around the restriction in Western countries, the oil is often sold "for external use only" in stores catering to Indian immigrants.
In India the restrictions on mustard oil are viewed as an attempt by foreign multi-national corporations to replace mustard oil with canola oil, a variety of rapeseed with low erucic acid content. But for North Indians, mustard oil is not just a cooking medium but it is very much intricately interwoven with their culture. They have been using it for ages and dispute that there is enough evidence for the toxicity of erucic acid.
India produces 4-7, 1-2, 2-4 million tons of seed, oil and mustard. India does not export or import seed and oil. Meal is exported. Rapeseed & mustard is cultivated in the rabi season (Oct-Nov to Feb-Mar). Production is highly dependent on the weather.
The major growing states are Rajasthan (40%), Uttar Pradesh (16%), and Haryana/Punjab (15%). The oil content varies between 36-42%, with average oil recovery of 34-35%. The remaining is used as rapeseed meal cake.
India exports around 4 lakh tons of meal.