New Delhi. Small quantities of new mustard crop have started arriving in some markets of the two top producing states, Rajasthan and Uttar Pradesh, while the pace of supply is expected to accelerate in the coming days. Due to an increase of about 2.80 lakh hectares in the sowing area and favorable weather conditions, mustard production is expected to be better this year, but price fluctuations will depend on demand and government procurement. During the week of January 31-February 6, wholesale mustard prices generally softened by Rs. 100-150 per quintal.

The price of 42 percent condition mustard fell by Rs. 150 to Rs. 7000 per quintal in Delhi and by Rs. 50 to Rs. 7350 per quintal in Jaipur. However, markets in Gujarat remained somewhat firm due to good buying at lower prices, but prices fell by up to Rs. 150 per quintal in the markets of Haryana and Madhya Pradesh.

A mixed trend was observed in Rajasthan. Despite sporadic supplies of new crop, mustard prices in the state are running above the government support price, providing relief to farmers. The crop condition is reported to be good. Mustard prices softened by Rs. 100 in Hapur and Rs. 250 per quintal in Agra, Uttar Pradesh.

The softening in mustard prices also led to a decline of Rs. 1-2 per kg in the prices of mustard oil - expeller and kachi ghani. In Delhi, the price of expeller oil fell by Rs. 20 to Rs. 1455 per 10 kg and in Charkhi Dadri to Rs. 1465 per 10 kg. In Kota, the price of kachi ghani mustard oil fell by Rs. 65 to Rs. 1455 per 10 kg.

Mustard arrivals are low in the major markets of the key producing states as it is the off-season for supply before the strong arrival of the new crop begins. However, with the wedding season underway, a significant drop in prices seems unlikely.

Government agencies have limited stocks of mustard seeds remaining, but oil mills are receiving adequate quantities of raw material. Due to lower-than-normal trading activity in mustard cake and de-oiled cake, prices remained largely stable or slightly softer.