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Informist, Friday, Jan. 24, 2025

By Anjali Lavania

MUMBAI – Prices of mustard fell in key markets across the country on Friday, while soybean and groundnut prices were steady, traders said. Mustard prices were down due to poor international and domestic demand for rapeseed meal, they said. 

Prices of SOYBEAN in Indore, Madhya Pradesh, were steady at INR 4,050-INR 4,300 per 100 kg, said Narendra Porwal, a local trader. Arrivals were down by 300 bags at 3,100 bags, (1 bag = 90 kg) from Thursday, Porwal added.

"Due to the increased availability of edible oils, local demand for oilseeds has come down, and it has certainly created an impact on farmers' income. Last year, farmers got very good prices for soybeans and this year, they are getting prices far below the minimum support price. This season, we have good production, but farmers haven't got good prices. The impact of lower prices of soybean will create a problem in the next season, that is what I feel," said Rahul Chauhan, director of IGrain India. 

Soybean prices may remain bearish in the long term due to weak domestic and international demand for soymeal, said Govind Jadhav, a research analyst at Samunnati, an agri-enterprise company. "Indian soybean meal is facing severe competition, as crushing till the end of December was lower, resulting in a drop in production of soymeal and consumption and export is likely to slow down in coming months," according to The Solvent Extractors' Association of India.

Meanwhile, GROUNDNUT prices in Gondal, Gujarat, were steady at INR 5,250-INR 6,600 per 100 kg, said Ashok Virvani, a local trader. "In the period of one to three months, groundnut prices are expected to fall due to high production and weak export demand," he said. The area under groundnut was up 6.7% on year at 365,000 hectares as of Jan. 20, according to data from the Department of Agriculture and Farmers' Welfare. 

The Indian groundnut market largely depends on export demand, which has been poor this year. India exports three varieties of groundnut--Bold, TJ, and Java. Exports to Iran and Algeria were down this year. According to Neharu Kher, the managing director of Across Overseas Pvt Ltd, it is not viable for farmers to grow groundnuts if export demand is weak or absent.

Prices of MUSTARD were down by INR 25 at INR 6,250-INR 6,275 per 100 kg, according to Marudhar Trading Agency. Arrivals in Jaipur were unchanged at 75,000 bags, while arrivals across the country were down by 5,000 bags to 165,000 bags, the agency said.

"Poor demand by millers is leading to a fall in prices of mustard," Sameriya said. Sluggish domestic and international demand for rapeseed meal, is leading to less crushing, he added. There is uncertainty over the export of rapeseed meal to Bangladesh, which has led to a fall in volume in recent months. India's oilmeal exports to Bangladesh fell nearly 17% on year to 547,657 tonnes in Apr-Dec, according to data by The Solvent Extractors' Association of India.

End

Edited by Avishek Dutta

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