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Informist, Friday, May 9, 2025

By Anjali Lavania

MUMBAI – Prices of mustard and groundnut rose in Jaipur and Gondal while those of soybean were steady in Indore on Friday, traders said. Even though prices of soybean were steady Friday, they have been under pressure over the past few days and are likely to face some more pressure due to availability of cheaper subsititutes and oversupply in most of the domestic markets across the country, they added.

Prices of MUSTARD seed in Jaipur, Rajasthan, rose by INR 125 to INR 6,350-INR 6,375 per 100 kg, according to Marudhar Trading Agency. Arrivals of mustard across India decreased by 75,000 bags to 375,000 bags (1 bag = 50 kg).

"Prices improved a bit on Friday due to fall in arrivals. However, this will be short-lived as there is sluggish demand for rapeseed meal," said Mahesh Sameriya, a trader from Rajasthan. India exported 1.87 million tonnes of rapeseed meal in 2024-25 (Apr-Mar), lower than 2.21 million tonnes a year ago, the Solvent Extractors' Association of India said in its monthly release.

"The rapeseed meal export plummeted due to lack of demand from destinations. If China relaxes the existing stringent conditions on the import of Indian rapeseed meal, India could become a key supplier and meet a substantial portion of China's demand," the release said. 

Millers are buying cautiously and not-doing bulk-buying, Sameriya said. Although procurement of the new mustard crop is giving some support to prices, improvement is still happening at a slow pace, he added. 

GROUNDNUT prices, including those of poor, medium and best varieties, were up by INR 100 to INR 4,400-INR 5,750 per 100 kg at Gondal in Gujarat, said Ashok Virvani, a local trader. Arrivals increased to 3,720 bags on Friday (1 bag = 45 kg) from 1,950 bags on the previous day, he said. "Groundnut prices may gain some support in medium term as demand from China is improving," he added. However, in the long-term, overall market sentiment is bearish due to huge production estimations this year, he added. 

Groundnut production is seen at 27.63 million tonnes in 2024-25 (Jul-Jun), an increase of 1.76 million tonnes from 2023-24, as per the data shared by Rahul Chauhan, director of iGrain India. 

SOYBEAN prices at Indore in Madhya Pradesh were steady at INR 3,850-INR 4,100 per 100 kg, said Shailendra Soni, a local trader. Arrivals rose by 200 bags to 3,300 bags (1 bag = 90 kg). In the near-to-medium term, prices are expected to be under pressure due to factors like huge availability of oilseed supply in most of the markets and growing demand of soymeal subsitutes such as distillers dried grains with solubles or DDGS, he said.

distillers dried grains with solubles is a byproduct of the production of ethanol. Grains like corn, wheat, or rice are fermented and distilled to make alcohol. The leftover material, rich in protein, is dried and used as feed for livestock and poultry.

Moreover, high soyoil imports are also weighing down on domestic soybean prices, he said. According to data released by The Solvent Extractors' Association of India, crude soyoil imports in March increased to 355,358 tonnes from 218,604 tonnes a year ago. Crude soyoil imports during Nov-Mar rose to 1.91 million tonnes from 882,943 tonnes in the same period last year.

"With import volumes climbing, domestic processors are struggling to compete. Cheaper landed oil is flooding the market, eroding margins for local crushers and refiners," said Chauhan on X platform. 

End

Edited by Akul Nishant Akhoury

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