India Edible Oil
Groundnut flat; mustard down on huge edible oil imports
This story was originally published at 18:24 IST on 31 December 2024
Register to read our real-time news.Informist, Tuesday, Dec. 31, 2024
By Anjali Lavania
MUMBAI – Prices of mustard fell on Tuesday in key spot markets in the country, traders said. Prices of groundnut and soybean were steady in Gondal and Indore respectively, they said.
MUSTARD seed prices fell by INR 50 to INR 6,500-INR 6,525 per 100 kilograms in Jaipur. Arrivals in Rajasthan were unchanged at 70,000 bags (1 bag = 50 kg). Arrivals across the country were unchanged at 170,000 bags, according to Marudhar Trading Agency.
"Huge imports of edible oils are affecting the mustard seed prices negatively," said a trader on condition of anonymity. Prices may remain bearish in the range of INR 6,300-INR 6,800 per 100 kg in the near term, he said. However, in the long-term, mustard prices are expected to rise on the estimate of low production, he added.
In the current rabi season, mustard acreage is seen running below the last year's level. As of Dec. 30, mustard acreage was 8.9 million hectares, down 5.6% from a year ago, according to data from the Department of Agriculture and Farmers Welfare.
India's vegetable oil imports in November, the first month of the oil year 2024-25 (Nov-Oct), were 1.63 million tonnes, up 40% from the corresponding period last year, according to the Solvent Extractors' Association of India.
SOYBEAN prices in Indore were steady at INR 4,000-INR 4,300 per 100 kg, said Narendra Porwal, a local trader. Arrivals were unchanged at 2,400 bags (1 bag = 90 kg), he said.
"Current resistance level is identified at INR 4,570 per 100 kg. If prices can sustain above this point, there is an expectation of an increase to INR 4,750-INR 4,800 per 100 kg," said Shailendra Soni, a local trader from Madhya Pradesh. However, bullish potential is deemed low due to anticipated large harvests in South America, he added.
GROUNDNUT prices at Gondal in Gujarat were steady at INR 5,200-INR 6,750 per 100 kg, said Ashok Virvani, a trader from the state. Weak export demand and an abundant supply of groundnuts in various mandis like Gondal, Rajkot and Junagadh, are weighing down the prices, he said.
Groundnut production for the 2024-25 season is projected to reach a record 10.36 million tonnes, a significant increase from 8.67 million tonnes last year, according to the Department of Agriculture and Farmers Welfare.
COMMODITY | MARKET | PRICE (INR/100 kg) | CHANGE (in INR) |
Mustard | Jaipur | 6,500-6,525 | (-)50 |
Soybean | Indore | 4,000-4,300 | -- |
Groundnut | Gondal | 5,200-6,750 | -- |
End
Edited by Akul Nishant Akhoury
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