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Informist, Monday, Jan. 20, 2025

By Anjali Lavania

MUMBAI - Prices of mustard seed and soybean fell in the key markets Monday, while those of groundnut were steady, traders said. However, mustard prices are likely to be bullish in the long term on expectation of lower output this year, they said. 

Prices of MUSTARD in the benchmark market of Jaipur in Rajasthan fell INR 50 from Friday to INR 6,325-INR 6,400 per 100 kg, according to Marudhar Trading Agency. Arrivals in Rajasthan were down by 5,000 bags to 70,000 bags (1 bag = 50 kg), he added. Arrivals across the country were down by 30,000 bags to 160,000 bags.

"Mustard prices fell on Monday due to the arrival of varieties having oil content less than 42%, which is usually not preferred by millers," Mahesh Sameriya, a trader from the state said. New mustard crop may start arriving in various mandis from mid-February, he said. 

However, in the long term, mustard prices are seen rising on expectation of lower production this year, Sameriya said. As of Jan. 10, mustard acreage was 8.85 million hectares, down 5.6% from a year ago, according to data from the Department of Agriculture and Farmers Welfare.

"Mustard prices in Kota were steady at INR 5,900 per 100 kg with arrivals being unchanged at 3,000 bags," said Sameriya. 

SOYBEAN prices in Indore, Madhya Pradesh, were down by INR 50 at INR 3,950-INR 4,200 per 100 kg, said Narendra Porwal, a local trader. Arrivals were around 3,500 bags, up by 300 bags (1 bag = 90 kg) from Friday, he added. 

"Huge soyoil imports are leading to tepid demand for domestically produced soybean, which in turn results in less crushing," Porwal said. This is having a negative impact on soybean prices, he said. Crude soyoil imports in December increased to 420,651 tonnes from 152,650 tonnes a year ago, according to the data by Solvent Extractors' Association of India.

The prolonged decline in soybean prices in Vidarbha, Maharashtra, poses a significant challenge for farmers, said Indrajit Paul, head of research at Agrocorp International. "In the previous two years, soybean prices fell by nearly 27% from INR 6,000 per 100 kg to INR 4,400 per 100 kg," Paul added. This price erosion reduces profit margins, making it difficult for farmers. Farmers may shift to alternative crops, but the transition entails risks, including climatic unsuitability and higher input costs. Additionally, soybean is critical for soil health as it fixes nitrogen, he added. 

"Soybean prices in Kota were steady at INR 4,350 per 100 kg with arrivals falling by 3,000 bags to 11,000 bags," Sameriya said. 

GROUNDNUT prices at Gondal in Gujarat were steady at INR 5,100-INR 6,550 per 100 kg, said Ashok Virvani, a Gujarat-based trader. "In the long-term, the groundnut price is expected to be bearish due to expectations of higher production," he said. The 2024-25 crop of groundnut is expected to be a bumper one, with the Department of Agriculture and Farmers Welfare putting the first advance estimate at 10.36 million tonnes in 2024-25 compared with 8.67 million tonnes last year.

Further, due to high damaged-quality arrivals in mandis and poor export demand, groundnut prices are expected to fall in the long term, Virvani added.  

End

Edited by Vandana Hingorani

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