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Informist, Monday, Nov. 25, 2024

By Anjali Lavania

MUMBAI - Mustard and soybean prices were steady in key spot markets across the country Monday, traders said. Prices of groundnut rose in Gondal, Gujarat, they said.

MUSTARD seed prices were steady at INR 6,625-6,650 per 100 kg in Jaipur, Rajasthan. Arrivals in Rajasthan rose by 15,000 bags to 115,000 bags (1 bag = 50 kg). Overall, the arrivals increased by 25,000 bags to 225,000 bags across the country, according to Marudhar Trading Agency.

"Mustard prices could gain some support in coming weeks due to the ongoing wedding season," said Mahesh Sameriya, a trader from Rajasthan. However, the sluggish rapeseed export may limit gains in mustard prices in the long term, he said. Rapeseed meal exports declined by about 25% to 1.18 million tonnes in Apr-Oct, according to data from the Solvent Extractors' Association of India.

Despite a 5.3% increase in the government-set minimum support price to INR 5,950 per 100 kg, farmers are showing reluctance towards the crop, according to a report by Kedia Advisory. "Rising temperatures in key producing regions during October and November have severely impacted germination, forcing farmers to shift toward crops like wheat and chickpeas, which promise better returns and are more resilient to heat stress," the report said. 

However, mustard seed prices in Kota, Rajasthan, were down by INR 50 to INR 6,100 per 100 kg. Arrivals at the market increased by 500 bags to 4,000 bags, Sameriya said.

SOYBEAN prices in Indore were steady at INR 4,000-4,500 per 100 kg, said Sandeep Sarda, a trader from the state. Arrivals were down by 600 bags to 1,500 bags (1 bag = 90 kg), he said. Prices are still below the minimum support price of INR 4,892 per 100 kg, which indicates slow procurement by the government, he said. "The overall trend in soybean prices may remain bearish in coming months due to ample availability of stocks," Narendra Porwal, another trader from the state said. 

Soybean prices in Kota fell by INR 49 to INR 4,301 per 100 kg, with arrivals increasing by 2,000 bags to 42,000 bags, Sameriya said. 

GROUNDNUT prices in the market at Gondal in Gujarat rose by INR 200 to INR 5,200-6,800 per 100 kg, said Ashok Virvani, a trader from the state. "Arrivals were of good variety, including G20, bold kernel and 66-nabar," Virvani said. However, some poor-quality arrivals with high moisture content are still an issue, he added. 

The National Agricultural Cooperative Marketing Federation of India Ltd. has procured 6,817 tonnes of groundnut, which is 0.4% of the total sanctioned quantity of 1.75 million tonnes. The Centre has allowed Gujarat, Karnataka, Rajasthan, Haryana, Andhra Pradesh, and Uttar Pradesh to procure groundnut at the minimum support price of INR 6,783 per 100 kg.

In a memorandum on Monday, the Solvent Extractors' Association of India  urged the government to lift the ban on futures trade in key agricultural commodities. The association has requested the government to allow futures trading, especially in internationally traded commodities like crude palm oil and crude soyoil. In the absence of trading on commodity exchanges, many market participants have faced immense challenges, including financial losses, the association said in the memorandum. 

End

Edited by Vandana Hingorani

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