Mustard Markets to Give Good Returns to Farmers in October

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

The farmers as well as traders/stockists have benefited from the price appreciation in 2021 much like previous year. Compared with March 2020 average prices, the traded offers are currently up more than Rs.4000/Qtl or higher by more than 50 percent. As compared with the December end (2020) prices, Mustard prices have gained nearly 2500 rupees on a quintal.

The NCDEX specified grades are being offered around Rs.8500/qtl presently. Sharp appreciation in edible oils has contributed to the price gains, in addition to 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 Rs.4650/qtl the MSP for 2022-23 season will be Rs.5050/qtl now. As the market prices are ruling much above the MSP, the farmers shall continue generating decent profits against their cultivation cost, moving forward.

October Month Seems Positive from Pricing Perspective:

This year was exceptional during March and April months in context to the price trend. Mustard prices are normally 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 higher also because of the tendency of stockists and the government to build sufficient reserves for battling against the 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, which implies a rise in demand for the seeds for planting.

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