Mustard prices hit season`s high

Over the past seven days, mustard prices in various mandis in Gujarat have surged by around Rs 40 per 20 kg. Currently, the prices are hovering between Rs 600 and Rs 605 per 20 kg.

"Three years ago, mustard prices saw a bullish trend but had only touched Rs 400 then," said Dinesh Trivedi, a trader based in Deesa, North Gujarat. In 2007-08, farmers would get only Rs 350 to Rs 360 for 20 kg.

Mustard was quoted at around Rs 570 per 20 kg at the start of the 2008-09 season but gradually declined to Rs 450 to Rs 465 per 20 kg following import duty cut on edible oils by the Centre.

Market sources say there is a supply shortage amid the increasing demand. As a result, prices have peaked in the season. "The production and the area under the crop have been declining over the past three years, which has resulted in a shortfall," said Naranbhai Patel, chairman, Gujarat Rajya Niyantrit Bajar Sangh, an association that monitors and controls a total of 225 agriculture marketing yards in Gujarat.

The overall production of mustard in India is estimated to have declined to 5 million tonnes in 2008-09 from 6.8 million tonnes in 2007-08.

"The production has dipped by around 1.5 to 1.8 million tonnes this year. Also, there was little carryforward stock at the beginning of the season. This contributed to the firm trend in the prices," Dinesh added.