Weekly Review-Mustard

14-Dec-2024 07:59 PM

Mustard prices soften due to weak demand from traders and millers

Price Movement

Mustard prices showed a softening trend during the week due to weak demand from traders and millers, compounded by ongoing softness in the edible oil-oilseeds market. The major reason behind this price decline was the significant import of over 15 lakh tonnes of edible oils in November, which placed pressure on market prices.

  • 42% Condition Mustard
    The price of 42% condition mustard dropped by Rs 50 to Rs 6350 per quintal in Delhi, and by Rs 25 to Rs 6500/6525 per quintal in Jaipur. Similar price drops were seen in other key mustard-producing regions such as Deesa (Gujarat), Barwala and Charkhi Dadri (Haryana), Morena, Porsa, and Gwalior (Madhya Pradesh), and Agra (Uttar Pradesh). Rajasthan, the largest mustard-producing state, saw price declines ranging from Rs 40 to Rs 100 per quintal in markets such as Bharatpur, Alwar, Khairthal, and Bundi.

Stock and Sowing Situation

  • Domestic mustard oil demand has returned to normal levels. However, exports of mustard cake have not shown promising growth, contributing to overall market weakness.
  • Mustard sowing in Rajasthan has lagged behind expectations. Despite this, both farmers and government agencies (NAFED and HAFED) have substantial stockpiles.
  • Nationally, daily mustard arrivals have decreased to 1.50-2.00 lakh bags, indicating that farmers are limiting sales due to falling prices. However, market prices have not seen a recovery, despite regular stock releases by government agencies.

Mustard Oil

  • Mustard oil prices also fell sharply during the week. Expeller mustard oil prices decreased by Rs 35 to Rs 1300 per 10 kg in Delhi, by Rs 30 to Rs 1330 per 10 kg in Charkhi Dadri, and by Rs 40 to Rs 1280 per 10 kg in Bharatpur.

Mustard Cake (DOC)

  • The price of mustard cake fell by Rs 35 to Rs 80 per quintal across key markets in Rajasthan (Jaipur, Bharatpur, Alwar, Khairthal) and Morena (Madhya Pradesh).

Overall, the mustard market remained under pressure due to weak demand, substantial edible oil imports, and slower-than-expected sowing in major producing regions.

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