Sebi acts to check rise in prices of mustard oils

Markets watchdog Sebi on Friday barred the National Commodity & Derivatives Exchange (NCDEX) from launching new mustard seed contracts till further orders amid efforts to curb rising prices of mustard oil. The direction came into immediate effect.

In respect of running contracts, no new position would be allowed to be taken. Only squaring up of position will be allowed, Sebi said.

Edible oil industry body Solvent Extractors Association’s Executive Director B V Mehta said Sebi has taken this decision to check further rise in prices of mustard oils. Much of the mustard seed stock has been crushed and as a result there is pressure on prices, he added.

Tight supply of mustard seeds has put pressure on wholesale and retail prices of mustard oil. According the government data, the average retail price of mustard oil (packaged) increased to ~183.50 per kg on October 7 this year from ~128.50 per kg on October 8, 2020.