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India: October Month Seems Positive from Pricing Perspective for Mustard Markets

by | Oct 15, 2021 | Mustard Seeds, Spices

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The mustard commodity has been highly rewarding for the entire trade participants and the farmers since the second quarter of 2020. The mandis prices, after establishing a low of 3875-3900 (NCDEX specified Grade) in March 2020, stabilized in April and followed the upward track since then.

The farmers and traders/stockists have benefited from the price appreciation in 2021, much like the previous year. Compared with March 2020 average prices, the traded offers are currently more than  $53 /kg or higher by more than 50 per cent. Compared with the December end (2020) prices, Mustard prices have gained nearly $33.21 on a kg.

The NCDEX specified grades are being offered around $ 113 kg presently. Sharp appreciation in edible oils has contributed to the price gains and factors like  tight inventory situation, stable retail end-demand, and interest for stocking the commodity. The Cabinet had increased Minimum Support Prices (MSP) for Rabi crops for marketing season 2022-23 on September 8. From $ 62 /kg, the MSP for the 2022-23 season will be $ 67/kg now. As the market prices are ruling much above the MSP, the farmers shall continue generating decent profits against their cultivation cost moving forward.

This year was exceptional during March and April months in context to the price trend. Mustard prices usually are under pressure because of the peak harvest season. Prices were firm during these months as the consumption was strong enough to dilute the arrival impact. Consumption was also higher because of the tendency of stockists and the government to build sufficient reserves to battle against pandemic-related problems. The inventory situation remains tight, and as the planting season approaches, demand for seeding will improve. Since prices were highly remunerative for the farmers during the last season, seeding quantity will increase this year, implying a rise in demand for the seeds for planting.

The festive season demand and the growing importance of Mustard Oil as an immunity booster for humans are expected to support domestic consumption this month. Tight inventory situation and rise in seeding demand will be an additional price supporting factor and the consistent requirement of mustard seed by the mustard oil plants. Summing up, mustard is expected to give good returns to farmers and the trade participants in October.

Mustard Seeds, the Brown Mustard Seeds Micro price were Recorded at $1,22 per Kg FOB, Brown Mustard Seeds Bold Recorded at $1,12 per Kg FOB and Yellow Mustard Seeds Micro were Recorded at $1,26 per Kg FOB, Yellow Mustard Seeds Bold price at $1,38 per Kg FOB.

Source: Krishi Jagran

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