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Informist, Monday, Sep 16, 2024

By Anjali Lavania

MUMBAI – Prices of mustard seeds rose in benchmark markets on firm demand ahead of festivals, while soybean and groundnut fell on poor quality arrivals, traders said. 

MUSTARD seed prices in the benchmark market of Jaipur in Rajasthan rose by 100 rupees from Friday to 6,925-6,950 rupees per 100 kg. Arrivals rose by 15,000 to 115,000 bags (1 bag = 50 kg). Arrivals across the country rose by 25,000 bags to 250,000 bags, according to Marudhar Trading Agency.

"Improved demand from oil millers ahead of Navratri (festival) is pushing up mustard prices," Mahesh Sameriya, a Rajasthan-based trader, said. Millers usually start buying seeds a month before the festivals, so active buying is supporting the mustard prices currently, he said.

SOYBEAN prices in the benchmark market of Indore in Madhya Pradesh fell 200 rupees to 4,400-4,600 rupees per 100 kg, according to local trader Mukesh Mangal. Arrivals were down by 100 bags to 1,500 bags (1 bag = 90 kg). In some markets in Madhya Pradesh, including Indore, the new soybean crop started arriving, he said. New seeds have high moisture content, which degrades their quality, he said. 

The Centre has approved the Madhya Pradesh government's proposal to buy soybeans from farmers at the minimum support price after prices fell below the minimum support price in some parts of the country, especially in Madhya Pradesh. The minimum support price for soybean for the 2024-25 kharif marketing season (Oct-Sep) is 4,892 rupees per 100 kg. 

In some parts of Madhya Pradesh, prices have fallen to a decade-low of 3,500-4,500 rupees per 100 kg. The fall in prices comes just ahead of the start of new-crop arrivals. At these prices, farmers are incurring a loss of 1,000-1,500 rupees per 100 kg, Narendra Porwal, a Madhya Pradesh-based farmer and trader said. . Soybean prices in most parts of Madhya Pradesh have been falling since November, when they were at 5,500 rupees per 100 kg. Although there was some recovery, it was short-lived, and prices have fallen consistently since August, experts said.

"I believe what farmers need right now is assurance of a guaranteed price, so that price volatility due to weather changes and plant diseases do not affect them much," said Devinder Sharma, an agriculture expert. If prices continue to slump, there will be a drop in the soybean area next year, Sharma said.

GROUNDNUT prices in Gondal in Gujarat fell 100 rupees to 4,600-5,300 rupees per 100 kg, said Ashok Virvani, a local trader. Arrivals were down by 1,010 bags to 11,450 bags (1 bag = 45 kg). The quality of seeds coming to market is poor with high moisture content, Dilipbhai Ramani, a Gujarat-based trader, said. 

The Indian groundnut market largely depends on export demand. This year, export demand has been poor. India exports three varieties of groundnut--Bold, TJ, and Java. Exports to Iran and Algeria were down this year. 

According to Neharu Kher, managing director of Across Overseas, it would become unviable for farmers to grow groundnut if the export demand remained weak.

On the National Commodity and Derivatives Exchange:

--The September contract of crude SUNFLOWER oil was up 6% at 1,055.4 rupees per 10 kg.

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

End

Edited by Saji George Titus

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