Mustard Oil Set to Slide on Rising Output
New Delhi: Mustard oil prices are expected to fall 5% in March as farmers have increased cultivation by 9% and output is expected to rise 16% to 79.12 lakh tonnes, according to government estimates.
“Mustard crop arrivals have begun and will pick up by the coming week. A price correction of .₹ 4-5 a litre will be there by mid-March when the new crop is milled,” said Sanjeev Giri, business head, edible oil, Mother Dairy.
In the Delhi wholesale market, bulk mustard oil (loose) price was being quoted at .₹ 780-810 per 10 kg while the packaged variety was priced at .₹ 85-110 per litre, said mustard oil company executives.
“The trend in prices is very bearish. Since January, we have reduced mustard oil prices by .₹ 5 a litre in retail and can further reduce by .₹ 1-2 a litre in March, if the government doesn’t step in to buy mustard seed at minimum support price (MSP) and mustard seed oil meal prices remain stable,” said Vivek Puri, MD, Puri Oil Mills.
He said mustard seed prices in Rajasthan and Haryana mandis had breached MSP and were at .₹ 3,570 a quintal on Thursday. The government has fixed .₹ 3,700 a quintal as MSP for mustard for this season.
Mustard meal is an important source of cattle and poultry feed and its prices indirectly impacts oil prices. Companies are also expecting consumption to revive to pre-drought years with increase in production and drop in prices. “In wholesale, prices have corrected since the past two months by .₹ 15 a litre and they will continue to fall till Holi,” said Vijay Data of Vijay Solvex. Expected fall in prices Rise in cultivation