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Informist, Thursday, Dec. 5, 2024

By Anjali Lavania

MUMBAI – Jaipur-based Marudhar Trading Agency has cut its estimates on mustard output in 2024-25 (Apr-Mar) marketing season to 12.0 million tonnes from 12.8 million tonnes earlier. "Mustard sowing is estimated to be lower during the current rabi season due to unfavourable weather and warmer-than-normal temperature conditions in October and November," a trader from the agency said. 
 

According to latest data from the Ministry of Agriculture and Farmers Welfare, mustard acreage in the country was 7.6 million hectares, down 5.2% from a year ago. Mustard is a rabi crop sown from October to early December in north, east and northeast India. The crop matures in 108–147 days and is harvested from mid-February to May.

Arrivals of mustard seed in the country in November are estimated at 350,000 tonnes, down from 500,000 tonnes in October, the agency said in a report.

A total of 9.2 million tonnes of mustard seeds have been crushed till now. Mills across India crushed around 800,000 tonnes of mustard seed in November compared to 1.0 million tonnes in October, the report showed. "Millers have bought less this year due to huge imports of other edible oils weighing down on domestic mustard prices," the trader from the agency said. Crushing usually remains high during July and August as major festivals occur during these months, he added.

Government agencies have disposed of around 1.3 million tonnes of mustard in the market so far this season, compared with 300,000 tonnes in the same period last year, which has increased supply and exerted downward pressure on prices, according to Indrajit Paul, head of research of Agrocorp International.

Government agencies procured 2.0 million tonnes of mustard seed between March and June, data from Marudhar Trading Agency showed.

Mustard prices showed a marginal recovery in November, but market sentiment is expected to be bearish in the medium-term due to huge mustard seed sales by government agencies, weak rapeseed meal exports, higher imports of other edible oils and sluggish demand, traders said. Currently, mustard prices are in the range of INR 6,600-6,700 per 100 kg in major spot markets, higher than the minimum support price of INR 5,950 per 100 kg. 

"Prices are getting down due to many reasons, like availability and huge sales by the National Agricultural Cooperative Marketing Federation of India and The Haryana State Co-operative Supply and Marketing Federation through tenders," Rahul Chauhan, director of IGrain India said. Prices are trending down also as the festive demand is over and due to higher imports of edible oils, Chauhan said. 

The total stock across the country at the end of November is estimated at around 2.8 million tonnes, including 950,000 tonnes with farmers. Inventories with stockists and processors are seen at 400,000 tn and those with agencies like National Agricultural Cooperative Marketing Federation of India were at 1.45 million tonnes, according to

Marudhar Trading Agency.

Mustard seed production in the country was 13.26 million tonnes in 2023-24, up 4.9% from 12.64 mln tonnes a year ago, according to the agriculture ministry.  End

Edited by Saji George Titus

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