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Informist, Tuesday, Jan. 28, 2025

By Anjali Lavania

MUMBAI - Prices of mustard and soybean fell in major markets across the country, traders said. Groundnut prices were steady in Gondal in Gujarat, they said. According to market participants, soybean prices are expected to fall further due to an anticipated increase in soymeal supply globally, which could weaken demand for Indian soymeal. Also, poor demand for Indian rapeseed meal globally is hurting domestic prices of mustard, they said.  

Prices of SOYBEAN in Indore, Madhya Pradesh, fell by INR 50 to INR 3,950-INR 4,200 per 100 kg, said Shailendra Soni, a local trader. Arrivals were up by 200 bags to 3,400 bags, (1 bag = 90 kg) from Monday, Soni added. Soybean prices fell as domestic and international demand for Indian soymeal is weak, he said.

"Due to the anticipated increase in soymeal supply, there is a possibility of price decline in the international market. Such reductions could further weaken demand for Indian soymeal and impact local producers adversely," Soni said. Moreover, in the domestic market, the presence of dried distillers grains with solubles, or DDGS, has already weakened the demand for soymeal, he added. 

Soybean prices in Kota, Rajasthan, were steady at INR 4,300 per 100 kg with arrivals falling by 3,000 bags to 11,000 bags, said Mahesh Sameriya, a trader from the state.

GROUNDNUT prices in Gondal, Gujarat, were steady at INR 5,150-INR 6,500 per 100 kg, said Ashok Virvani, a local trader. "Prices of groundnut are expected to fall in the long term due to prospects of higher production and delayed procurement of the oilseed across the country," he said. The area under groundnut was up 6.7% at 365,000 hectares as of Monday, according to data from the Department of Agriculture and Farmers' Welfare. 

National Agricultural Cooperative Marketing Federation of India Ltd. procured 726,323.91 tonnes of groundnut, which is nearly 35% of the total sanctioned quantity of 2.05 million tonnes till Jan. 14, according to data by the central procurement agency. The Centre has allowed Gujarat, Karnataka, Rajasthan, Haryana, Andhra Pradesh, and Uttar Pradesh to procure groundnut 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.

In Gujarat, 524,740.96 tonnes were procured, which is nearly 40% of the sanctioned quantity of 1.31 million tonnes. In Rajasthan, 150,483.65 tonnes of the sanctioned quantity of 531,828 tonnes was purchased, according to the data.

Prices of MUSTARD were down by INR 75 at INR 6,125-INR 6,150 per 100 kg, according to Marudhar Trading Agency. Arrivals in Jaipur were unchanged at 95,000 bags. Similarly, arrivals across the country were the same at 200,000 bags, the agency said. "Limited demand from millers, less crushing and poor domestic and international demand for rapeseed meal, is affecting oilseed prices negatively," said Sameriya. 

"However, in the long term, the mustard market offers optimism. Limited production can create tighter supplies, which may push prices upward. Rajasthan is expected to lead this rally, supported by strong domestic demand and reduced inventory levels," said Inddrajit Paul, head of research at Agrocorp International. Mustard acreage was 8.93 million hectares, down 4.7% from a year ago, as of Monday, according to data from the Department of Agriculture. "Farmers are shifting to other crops like wheat and potato instead of mustard in several parts of India," said Paul. Wheat and potato are less sensitive to temperature variations, he said.

Mustard prices in Kota were steady at INR 5,900 per 100 kg with arrivals decreasing by 1,000 bags to 7,000 bags, Sameriya said.

End

Edited by Vandana Hingorani 

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