The prices of oilseeds such as soybean, groundnut, and mustard have recently improved due to reduced arrivals in key mandis of major producing states, combined with demand from millers and processors. However, the wholesale price of soybean remains below the government's support price, and both groundnut and sunflower are also being traded below their support prices.

On January 11, only 1.35 lakh bags of mustard were reported in the mandis, which is relatively low. Despite the good stock of mustard held by government agencies like NAFED and HAFED, there is no urgency to sell these stocks, maintaining a balance in the mandis.

Additionally, NAFED has been purchasing soybean and groundnut from farmers at the minimum support price, with plans to reintroduce these stocks into the market in the future. The Cotton Corporation of India (CCI) is also increasing its stock of cottonseed, despite a low cotton production.

Trade analysts note that recent cottonseed sales at low prices by the CCI have had an impact on the demand and pricing of other oilseeds, potentially distorting business sentiment.

For example, last week, mustard was priced around Rs 6100-6200 per quintal, groundnut at Rs 5500-5600 per quintal, and soybean at Rs 4200-4300 per quintal. While edible oil prices showed some improvement, groundnut oil prices remained stable due to weak export demand.