The impact of policy changes on the mustard ecosystem: a multi-stakeholder perspective

Purpose Despite various consequences for different stakeholders in the mustard ecosystem, India prohibited blending in mustard oil to achieve self-reliance in edible oils and promote consumer health. This paper uncovers the implications of this policy on mustard production, consumption and prices. Design/methodology/approach This paper deploys system dynamics (SD) to model the mustard ecosystem. SD uses simulation modeling to comprehend the nonlinear behavior of complex systems over time utilizing causal-loop and stock-flow diagrams. Findings While the mustard price does not vary in the short run, it diverges toward a higher side in the long run due to the changed policy mandate. Surprisingly, due to the predominance of market prices, the policy administered minimum support price (MSP) was found to have a limited influence on mustard prices. Hence, the focus should be on supply augmentation through non-price-based measures like disseminating information to enhance the yield rate of seed production and promoting the adoption of efficient technologies with higher oil conversion efficiency. Research limitations/implications The paper allows policymakers to quantitatively evaluate the effectiveness of policy interventions to mitigate the adverse impacts of policy mandate. It presents a reliable roadmap for policymakers to roll out effective policies. Originality/value The paper uncovers the system-level impact of policy on stakeholders and examines the effectiveness of MSP.