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Informist, Thursday, Aug 29, 2024

By Anjali Lavania

MUMBAI – Prices of mustard seed and soybean rose in the markets of Jaipur and Indore, respectively, traders said. Prices of groundnut were unavailable as markets in Gujarat were closed due to heavy rainfall, they added.

MUSTARD seed prices in the benchmark market of Jaipur in Rajasthan rose 25 rupees from Wednesday to 6,225-6,250 rupees per 100 kg. Arrivals were up by 25,000 bags at 150,000 bags (1 bag = 50 kg). Similarly, arrivals across the country were up by 50,000 bags to 300,000 bags, according to Marudhar Trading Agency.

"Currently, mustard prices could remain steady at 6,250 rupees per 100 kg and may not rise beyond this," said Mahesh Sameriya, a local trader. Millers are buying as per requirement and not doing bulk buying, hence nothing new or positive can happen in the mustard market in the long run, he said. The new crop will be sown in October. In Kota, Rajasthan, mustard prices were steady at 5,650 rupees per 100 kg with arrivals at 5,000 bags, Sameriya said.

Wholesale prices of refined mustard oil were steady at 1,140 rupees per 10 ltr in Mumbai, according to data from The Solvent Extractors Association of India.

SOYBEAN prices in Indore, Madhya Pradesh, were up by 200 rupees from Wednesday at 4,600 rupees per 100 kg, according to Mukesh Mangal, a local trader. Arrivals of soybean declined to 300 bags (1 bag = 90 kg) from 600 bags on Wednesday. "Arrivals were lower today as compared to Wednesday, which supported the prices," Mangal said. 

"While festive season demand for edible oils from India may bolster prices, it will be interesting to observe how prices react following the implementation of India's import duty hike on edible oils," Indrajit Paul, head of research at Agrocorp International. According to media reports, the government is considering a proposal to raise import duties on crude and edible oils as domestic prices of most oilseeds have been below the minimum support prices for several months.

Currently, imports of crude palm, soybean, and sunflower oil do not attract basic customs duty, but agri-infra cess and education cess are levied on such imports, resulting in a total tax incidence of 5.5%. The government has extended the lower import duty on these edible oils till Mar 31, 2025. The centre had reduced import duty on refined edible oil to 13.75% from 17.5% to bring down prices last year. 

Wholesale prices of refined soyoil were down 0.5% at 970 rupees per 10 ltr in Mumbai, according to the SEA.

GROUNDNUT prices were unavailable as markets in Gondal, Gujarat, were shut due to heavy rainfall, Dilipbhai Ramani, a local trader said. "Heavy rainfall is affecting the crops badly, especially groundnut and cotton," Ashok Virvani, a Gujarat-based trader said. The trader said mandis and schools are closed, and waterlogged roads have prevented them from going to the market for the past four days.

"It's too early to say anything, (but) groundnut sowing is affected in a serious way," said Neharu Kher, managing director of Across Overseas Pvt Ltd, an agency specialising in the global trade of agricultural products. He said the most affected areas in Gujarat are Porbandar and Jamnagar. "So far, around 1.9 mln ha of sowing has been done for groundnuts, but it depends on rainfall whether the crop will be damaged or healthy."

Wholesale prices of refined groundnut oil were steady at 1,420 rupees per 10 ltr in Mumbai, data from the SEA showed.

On the National Commodity and Derivatives Exchange:

--The August contract of crude SUNFLOWER oil ended at 927 rupees per 10 kg, up 0.4% from the previous close.

--The September contract of crude SUNFLOWER oil ended at 940 rupees per 10 kg, up 0.3% from the previous close.

The following table details the prices of oilseeds in major markets, along with the changes:

End

Edited by Deepshikha Bhardwaj

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