Mustard seeds turn dearer on limited supply
NEW DELHI: Mustard seed has turned costlier in Indian markets amid steady demand from millers and limited supply.
Traders said prices of the seed have risen 5-8% in the past fortnight to Rs 3,400-3,800 per quintal as local and global millers placed fresh orders while inventories remained low.
Prices, however, will remain stable even as the new crop has started arriving in mandis, they said.
“The new crop arrivals are steady and slightly firmed up but cheaper than what they were in mid-January,” said Angshu Mallick, chief operating officer at edible oil company Adani Wilmar. “We expect prices to remain stable.”
Besides local millers, companies such as AdaniWilmar, ITC Ltd, Cargill India, Olam Agro India and Bunge India are making major purchases in mandis.
According to Mallick, mustard seeds with 42% oil content are being traded at Rs 3,800 a quintal while those with low oil and high moisture content are priced at Rs 3,400.
The government has fixed Rs 3,700 a quintal as the minimum support price (MSP) for mustard this season.
“Due to two years of poor crop, most oil mills don’t have carry over stock. Prices should thus remain firm in the short run,” Ashok Chatar of Marudhar Trading company in Chandpole Anaj mandi, Jaipur., adding that prices will rise further if the government entered the market for procurement.
But Sudhakar Desai, CEO at Emami Agrotech, said mustard oil prices will eventually fall as seed production this season is expected to be higher than the previous season. "Mustard oil prices in wholesale will come down to Rs 70-72 a litre by May from the current price of Rs 77," he said
Mustard crop has started arriving in major mandis of Rajasthan, Haryana, Gujarat and Madhya Pradesh. According to the government’s second advance estimate, the crop this year is expected to be 79.12 lakh tonnes as against 67.97 lakh tonnes in the previous year.
Traders said prices of the seed have risen 5-8% in the past fortnight to Rs 3,400-3,800 per quintal as local and global millers placed fresh orders while inventories remained low.
Prices, however, will remain stable even as the new crop has started arriving in mandis, they said.
“The new crop arrivals are steady and slightly firmed up but cheaper than what they were in mid-January,” said Angshu Mallick, chief operating officer at edible oil company Adani Wilmar. “We expect prices to remain stable.”
Besides local millers, companies such as AdaniWilmar, ITC Ltd, Cargill India, Olam Agro India and Bunge India are making major purchases in mandis.
According to Mallick, mustard seeds with 42% oil content are being traded at Rs 3,800 a quintal while those with low oil and high moisture content are priced at Rs 3,400.
The government has fixed Rs 3,700 a quintal as the minimum support price (MSP) for mustard this season.
“Due to two years of poor crop, most oil mills don’t have carry over stock. Prices should thus remain firm in the short run,” Ashok Chatar of Marudhar Trading company in Chandpole Anaj mandi, Jaipur., adding that prices will rise further if the government entered the market for procurement.
But Sudhakar Desai, CEO at Emami Agrotech, said mustard oil prices will eventually fall as seed production this season is expected to be higher than the previous season. "Mustard oil prices in wholesale will come down to Rs 70-72 a litre by May from the current price of Rs 77," he said
Mustard crop has started arriving in major mandis of Rajasthan, Haryana, Gujarat and Madhya Pradesh. According to the government’s second advance estimate, the crop this year is expected to be 79.12 lakh tonnes as against 67.97 lakh tonnes in the previous year.
