Strong Arrival of New Mustard May Put Pressure on Prices

03-Apr-2025 05:39 PM

New Delhi: During March, around 14.50 lakh tonnes of mustard arrived in the major producing states' markets, while approximately 5 lakh tonnes reached government procurement centers. The government agency purchased mustard at a minimum support price (MSP) of Rs. 5,950 per quintal, while wholesale market prices fluctuated. Traders, stockists, millers, and processors are showing keen interest in purchasing mustard at lower prices. It is believed that if government agencies ramp up their procurement efforts, the prices of this vital oilseed may strengthen.

The central government has already approved mustard procurement in top-producing states like Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, and Gujarat, setting specific quantity limits. Procurement centers have been opened in these states, and the buying process is expected to gain momentum in April, much awaited by farmers.

The Union Ministry of Agriculture has estimated domestic mustard production at 128.7 lakh tonnes for the 2024-25 Rabi season, while industry and trade organizations project it at 111.25 lakh tonnes. Generally, the highest mustard supply occurs between March and May, after which arrivals slow down. Government procurement agencies also remain active in April and May. While a decline in sowing area suggests a possible drop in mustard production, the quality is reportedly excellent.

According to market analysts, this year, mustard arriving at mandis is dry, with low moisture content and high oil content, making it more attractive to buyers. Consequently, there is no hesitation in purchases. However, farmers are struggling to secure attractive or profitable prices. The weather conditions in key mustard-producing states remain favorable for harvesting. Estimated production stands at 51 lakh tonnes in Rajasthan and 15 lakh tonnes in Uttar Pradesh.