New crop hits mustard prices

Fresh arrivals of mustard seed in many northern mandis have forced down prices of mustard oil and mustard seed in producing states.

Mustard oil expeller prices have fallen by Rs. 20/40 per quintal so far in the season. Mustard seed is barely unchanged and may start falling as the arrivals increase.

According to Sanjay Kumar of Bhagwati Oil & General Mills, which has plants at Charkhi Dadri in Haryana, the demand for mustard oil has slumped this year and overall demand has fallen by 50 per cent.

Mustard oil plunged on markets by Rs 40 to Rs 4280/4285 per quintal on January 9, he said. Mustard seed managed to stay between Rs. 1725/1750 per quintal.

Similarly in mandis such as Hansi, Bhiwani and Jind in Haryana, mustard oil was down Rs 15/20 to Rs 4260/4280 per quintal.

A trader in Jind said if the current trend of low demand continued, the oil prices would fall further and sharply.

However, mustard seed prices are not likely to witness sharp fluctuations, he added.

Sowing of mustard is estimated to have touched a record 64 lakh hectare in the rabi season, against 58 lakh ha. last year.

The weather has been favourable to the the crop so far and a fresh round of rains would boost the output considerably.

According to estimates made by traders, the rabi season would produce 70-75 lakh tonnes of mustard seed.

This output is likely to put more pressure on prices of both seed and oil. The mandis of Uttar Pradesh have started receiving the 'lahi' crop.

The 'toria' crop is likely to start arriving at mandis soon. These arrivals could lead to further fall in mustard seed and mustard oil prices.