Mus­tard may Rise An­other 2%

The Economic Times - - Commodities Plus - Mad­hvi.Sally@ times­

New Delhi: Mus­tard seed prices re­main firm at .₹ 42-44 a kg in man­dis, well above the min­i­mum sup­port price of .₹ 33.50 a kg across Ra­jasthan and MP, where ar­rivals have picked up. Traders and com­pa­nies ex­pect prices to fur­ther rise by 2% in the next few days. With pro­duc­tion this year ex­pected at 58 lakh tonnes, 3% less than the pre­vi­ous year, oil millers say they will try to keep re­tail prices of mus­tard oil sta­ble.

“Prices have steadily been in­creas­ing in man­dis from .₹ 35 a kg in the last week of March to the cur­rent price of .₹ 44 a kg. This is largely due to fresh buy­ing by stock­ists for lead­ing oil millers,” said Anil Chat­tar, from Jaipur­based Marudha Trad­ing com­pany. He said the prices were ex­pected to re­main firm, max­i­mum by 2-3% in the short run. Sim­i­larly, Vinod TP, an­a­lyst at Cochin-based Ge­ofin Com­trade, said that mus­tard seed prices had touched an all-time high on Mon­day this year.

“We ex­pect mus­tard seed price to cross 44.30 a kg level, due to ru­mours of short­age of grain and an­tic­i­pated rains in Ra­jasthan,” he said.

Vinod added that oil millers were ex­pect­ing good de­mand dur­ing the month of Ramadan which would fall in the month of June. Com­pa­nies like Puri Oil Mills said that the prices of mus­tard oil have sta­bilised in the range of 90-110 per litre in re­tail stores as ar­rival of new crop had picked up. “We ex­pect prices to re­main this way un­til there are no un­ex­pected rains or hail­storm,” said Vivek Puri, MD, Puri Oil Mills. Puri added that mus­tard crop was in bet­ter con­di­tion as com­pared to last year in spite of less sow­ing but over­all pro­duc­tion would re­main short of last five years av­er­age.

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