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Informist, Thursday, Dec. 5, 2024

By Anjali Lavania

MUMBAI – Spot prices of mustard and groundnut fell slightly in key markets across the country, traders said. Soybean prices rose in Indore, Madhya Pradesh, they added.

MUSTARD seed prices fell by INR 25 to INR 6,575-INR 6,600 per 100 kg in Jaipur, Rajasthan. Arrivals in Rajasthan were down by 5,000 bags to 95,000 bags (1 bag = 50 kilogram). Arrivals across the country decreased by 20,000 bags to 180,000 bags, the same as Monday, according to Marudhar Trading Agency.

"Prices are expected to fall in the medium-term due to excess supply, high imports of edible oil, and sluggish demand," said a trader from Rajasthan who did not want to be named. "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," he said.  

The government has sold around 1.3 million tonnes of mustard in the market till now, which started from July last week to the end of November, according to data by Marudhar Trading Agency. Last year, during the same period, government sales were around 300,000 tonnes. Arrivals of mustard seed in the country in November are estimated at 350,000 tonnes, according to the data by Marudhar Trading Agency. 

SOYBEAN prices in Indore, Madhya Pradesh, rose by INR 50 to INR 3,900-INR 4,400 per 100 kg, said Narendra Porwal, a local trader. Arrivals were unchanged at 2,600 bags (1 bag = 90 kg), he said. "The procurement by the government is not very helpful for farmers as soybean prices are hovering around INR 4,400 per 100 kg since the past two weeks," Porwal said. The soybean price trend is expected to remain bearish in the medium-term due to excess supply and huge imports of cheaper soyoil, Porwal added. 

The government procured 254,086.14 tonnes of soybean, 7.6% of the sanctioned quantity of 3.36 million tonnes, according to data by the central procurement agency released on Monday. The Centre has allowed six states--Karnataka, Telangana, Madhya Pradesh, Maharashtra, Rajasthan, and Gujarat--to procure soybean from farmers at a minimum support price of INR 4,892 per 100 kg for 2024-25 (Oct-Sept). 

GROUNDNUT prices in Gondal fell by INR 100 to INR 5,150-INR 6,700 per 100 kg, said Ashok Virvani, a trader from Gujarat. "Mostly arrivals which had high moisture-content came to mandi on Thursday," Virvani said. However, procurement by the government has raised hope among market participants, he added. 

The National Agricultural Cooperative Marketing Federation of India Ltd. procured 89,858.50 tonnes of groundnut, around 4.4% of the total sanctioned quantity of 2.05 million tonnes, according to data by the central procurement agency. The Centre has allowed Gujarat, Karnataka, Rajasthan, Haryana, Andhra Pradesh, and Uttar Pradesh to procure groundnuts at a minimum support price of INR 6,783 per 100 kg. However, the procurement has started only in Gujarat, Rajasthan and Uttar Pradesh with minimal purchases.

End

Edited by Akul Nishant Akhoury

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