Weekly Review-Mustard

01-Feb-2025 08:28 PM

Mustard prices remain soft due to arrival of new crop

The mustard market seems to be experiencing a downturn due to a combination of factors—primarily the arrival of new mustard crops and a decline in demand for mustard oil.

With the arrival of new crops in Rajasthan's Kota Mandi and other mandis, prices are softening below the Minimum Support Price (MSP), which was raised to Rs 5950 per quintal for the 2024-25 season.

Prices for mustard with 42% condition have dropped, and this trend is affecting mustard oil prices as well. Expeller oil and Kachi Ghani oil prices have decreased, likely due to weak demand. 

Despite a decrease in mustard sowing area and expectations of reduced production this year, the influx of new crop supplies in the market is keeping the prices lower than expected.

Furthermore, the sluggishness in the oilseed oil market is contributing to the broader weakness, as the increase in the basic import duty on edible oil hasn't had the desired effect on the market. 

What are your thoughts on the long-term outlook for mustard prices and mustard oil demand? Will the market stabilize once the full supply from new crops hits, or could these trends continue?