Weekly Review - Mustard

30-Nov-2024 07:15 PM

Weekly Review - Mustard (22-28 November)


Price Trends:

  • Mustard Prices:

    • Prices of 42% condition mustard showed a decline during the week. In Delhi, the price fell by Rs 50 to Rs 6450 per quintal, while in Jaipur, it slipped by Rs 25 to Rs 6550-6575 per quintal.
    • In Gujarat, average quality mustard in Deesa and Dhanera markets softened by Rs 150 per quintal.
    • In Haryana, the market showed a mixed trend: a Rs 100 drop in Hisar, but a Rs 100 increase in Sirsa.
    • Madhya Pradesh markets saw a Rs 50 decrease in Morena and Porsa.
    • In Uttar Pradesh, prices fell by Rs 150 in Hapur and Rs 100 in Agra, with prices now at Rs 6550 and Rs 6600-7100 per quintal, respectively.
    • Rajasthan, a major producing state, also saw a Rs 100 drop in prices in Kota.

  • Mustard Oil:

    • With the fall in mustard prices, mustard oil prices softened as well. Expeller oil in Delhi decreased by Rs 10 to Rs 1325 per 10 kg, while Kachi Ghani oil in Bharatpur dropped by Rs 50 to Rs 1320.

Demand & Market Conditions:

  • Oil millers and traders are showing limited interest in purchasing mustard due to the declining prices of both mustard and mustard oil. This is creating a negative market sentiment, and the drop in mustard oil prices has been evident since Diwali, with a Rs 10 per kg fall from peak levels.
  • Despite the overall weak demand, the average daily arrival of mustard at national level is around 2.00-2.25 lakh bags, but it’s still insufficient to bolster prices.

Sowing and Market Outlook:

  • The sowing of mustard, a key oilseed for the Rabi season, is proceeding, but there are challenges. High temperatures in major producing states, particularly in Rajasthan, are hampering the expansion of the cultivated area.
  • The central government has increased the Minimum Support Price (MSP) of mustard for the 2024-25 season to Rs 5950 per quintal, up by Rs 300 from last year's Rs 5650 per quintal, which may provide some support to prices moving forward. However, the overall market is still under pressure.

In conclusion, mustard prices are facing downward pressure due to a combination of weak demand, falling oil prices, and potential disruptions in sowing. The price trend might stabilize if the sowing season improves, but challenges persist.

Latest News