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Informist, Tuesday, Nov. 19, 2024

By Anjali Lavania

MUMBAI – Prices of all oilseeds rose in key markets across the country Tuesday, traders said. Prices of groundnuts rose due to good quality arrivals in the benchmark market of Gondal in Gujarat, they said.

MUSTARD seed prices in Jaipur rose by INR 25 to INR 6,725-INR 6,750 per 100 kg. Arrivals in Rajasthan were unchanged at 115,000 bags (1 bag = 50 kg). Across India, arrivals were unchanged at 225,000 bags, according to Marudhar Trading Agency. 

"Many traders and industry participants do not believe that mustard prices will go beyond INR 7,000 per 100 kg in the long run due to the negative impact of sluggish oilmeal exports," said Mahesh Sameriya, a Rajasthan-based trader. 

The Solvent Extractors' Association of India has sent a memorandum to the central government, requesting it to boost the export of rapeseed meal and maintain a minimum support price for farmers. "During the period of Apr-Oct this year, rapeseed meal exports have declined by approximately 25%, with only 1.18 million tonnes exported compared to 1.51 million tonnes during the same period last year," the association said in the memorandum. 

India is a key exporter of rapeseed meal as an essential ingredient of cattle feed in the international market. In 2023-24 (Apr-Mar), India exported nearly 2.2 million tonnes of rapeseed meal, providing support to farmers by enabling better prices for their produce. However, this year witnessed a reduction in rapeseed meal exports.

"This is largely due to our higher pricing in the international market," the association said. "Currently, we are priced out of the international market, with rapeseed meal ex-Hamburg quoted at $283 per tonne, $40-$50 less than the Indian prices."

Current rapeseed prices are around INR 6,200-6,300 per 100 kg. However, as per industry estimates, there are good chances that prices will fall below the minimum support price of INR 5,950 per 100 kg, the memorandum said. Considering the poor price scenario of rapeseed meal domestically, the association has requested the government to take action such as reduction of abundant maize DDGS and de-oiled rice bran by allowing exports.

In Kota, Rajasthan, mustard prices were up by INR 50 at INR 6,000 per 100 kg, with arrivals increasing by 1,000 bags to 4,000 bags, Sameriya said.

SOYBEAN prices in Indore rose by INR 100 to INR 4,000-INR 4,400 per 100 kg, said Shailendra Soni, a local trader. Arrivals were down by 500 bags at 2,500 bags (1 bag = 90 kg), he added. "Last week, prices opened at INR 4,540 per 100 kg, but currently it is near INR 4,400 per kg for the best varieties," he said. In the long run, prices are expected to fall due to surplus supply, he said. Similarly, soybean prices in Kota rose by INR 50 to INR 4,400 per 100 kg, with arrivals being unchanged at 45,000 bags, Sameriya said. 

"Soybean prices in Indore, Madhya Pradesh, are expected to remain bearish in the short to medium term, staying within the range of INR 4,300-INR 4,700 per 100 kg. In the long term, prices are also likely to stay bearish as long as they trade below INR 4,700 per 100 kg," Indrajit Paul, head of research at Agrocorp International, said.

GROUNDNUT prices in Gondal markets were up by INR 200 to INR 5,200-INR 6,800 per 100 kg, said Ashok Virvani, a trader from Gujarat. "Arrivals of good quality varieties like G20 and bold kernel supported the prices," Virvani said. However, as there are abundant stocks with high moisture content, prices appear to be bearish in the long run, he said. During Apr-Oct, exports of groundnut meal fell to 7,823 tonnes from 13,146 tonnes in the year-ago period, as per the association data.

SUNFLOWER OIL imports in October rose to 239,116 tonnes from 153,780 tonnes a year ago, the Solvent Extractors' Association said. During oil year 2023-24 (Nov-Oct), India imported sunflower oil from Russia, Romania, Ukraine, and Argentina, the association said.

On the National Commodity and Derivatives Exchange:

--The November contract of crude sunflower oil was flat at INR 1,325.30 per 10 kg.

--The December contract of crude sunflower oil was down 0.6% at INR 1,358 per 10 kg.

End

Edited by Avishek Dutta

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