Mustard may Rise Another 2%
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.