Weekly Review-Mustard

21-Dec-2024 07:12 PM

Mustard prices fall due to weak demand from oil millers


Price Decline in Mustard and Related Products:

  • Mustard Prices: During the week of 14 to 20 December, mustard prices experienced a decline of Rs 100-200 per quintal across various regions. This was mainly driven by weak demand from oil millers, falling mustard oil prices, and sluggish export performance of mustard oil cake (DOC).

    • In Delhi, the price of 42% condition mustard dropped by Rs 125, settling at Rs 6200 per quintal.
    • In Jaipur, the price fell by Rs 225, reaching Rs 6250-6275 per quintal.
    • Prices in other areas also showed a downward trend: in Hissar, Haryana, prices dropped by Rs 300 to Rs 5700-5800 per quintal, while in Gwalior, Madhya Pradesh, they fell by Rs 200 to Rs 5800-6000 per quintal.
    • In Agra, Uttar Pradesh, the price dropped by Rs 300 to Rs 6500-6850 per quintal.

  • Mustard Oil Prices: The decline in mustard prices also reflected in mustard oil prices, which fell by Rs 10 to Rs 40 per 10 kg.

    • In Delhi, expeller mustard oil dropped by Rs 15 to Rs 1295 per 10 kg.
    • In Mumbai, the price of expeller mustard oil decreased by Rs 30 to Rs 1340 per 10 kg.
    • Kachi Ghani mustard oil also saw a reduction of Rs 40 per 10 kg in locations like Khairthal, Alwar, and Hapur, bringing prices to Rs 1280-1420.

Market Trends and Arrivals:

  • Arrivals: Nationally, the average daily arrival of mustard has decreased to 1.50-2.00 lakh bags, each weighing 50 kg. Despite this decrease in arrivals, mustard prices remain soft, primarily due to weak demand in the market.

  • Mustard Cake (DOC): The mustard cake market also saw a reduction in prices, with a fall of Rs 30-50 per quintal. In some areas, mustard DOC prices dropped by Rs 1000 per ton, though some regions witnessed a slight improvement, with an increase of Rs 500 per ton.

Other Factors:

  • Mustard Sowing: Sowing of mustard is lagging behind schedule this year, and weather conditions have not been entirely favorable for crop growth.

  • Government Support: The government has increased the minimum support price (MSP) for mustard from Rs 5650 per quintal to Rs 5950 per quintal, which may help stabilize the market to some extent.

In conclusion, despite a decrease in arrivals and the government's intervention through the MSP increase, weak demand and falling mustard oil prices are keeping mustard prices soft across major markets.

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