Mustard prices cross 5000 mark – Farmers advised to sell regularly

Mustard markets have risen sharply in last few months giving stockists and farmers decent returns on their purchase/production costs. Last year prices were seen in a moderate range but this year there has been wider price swings this year, and as against peak arrival season’s levels, prices are up more than 35% approximately. In fact, mustard even surpassed 5000 level after so many years. Sharp appreciation in edible oils has attributed to the price gains in addition to stable retail end demand. There are estimates of rise in sowing area this year due to better price remuneration by the farmers in 2019-2020. But the old season crop estimate is seen lower year on year because of heavy rainfall across regions of Haryana and Rajasthan during March and April months. This explains Rape Mustard seed derivatives and wholesale prices surpassing the 5000 mark this week. According to traders and farmers possible damage is expected around 20-25% roughly.

Demand for Mustard oil remains healthy due to increase in household consumption, being influenced from the Rainy season. Procurement from the government had also favored price rise. According to Haryana Agriculture Ministry, mustard was procured at minimum support price of Rs 4,425 per quintal. As per trade sources total procurement in the leading producing states of Rajasthan and Haryana have reached roughly 12 Lakh tonnes this year. All in all, procurement of Mustard ended with a satisfactory pace in the country despite Covid -19 outbreak.  

Mustard procurement had commenced at 165 centres across Haryana in the month of April and to overcome the corona virus outbreak during the procurement season, the state government not only increased the number of purchase centers from last year’s 64, but also put limit against the number of farmers visiting these centers per day at 100 only.  The Gujarat State Cooperative Marketing Federation Ltd (GUJCOMASOL) was also active in procuring mustard seeds this year.

Advise for Farmers: 

RM seed also finds strength from palm oil as it bears a positive correlation with RM oil, and at present RM oil demand remains strong. Malaysian palm oil also trades with positive trend in present term. Therefore it continues pushing wholesale prices of mustard higher. Buying interest is relatively better in oilseeds like soybean, as against seen during beginning of this year. All these factors are influential enough in keeping prices firm for this Rabi crop. However prices are nearing peak levels and market sources feel that from current rates, another 10-20% appreciation may be observed. Sowing shall commence for the mustard crop by November and there will be new season arrivals of soybean by October. This time early sowing in soybean will result in good number of October, instead of November month. These factors can prevent any notable price rise. Therefore farmers should prefer selling their produce at regular intervals. In coming weeks there may emerge fresh buying opportunity and farmers should be ready to catch such opportunities also. Further coverage on this aspect will be given as and when opportunities emerge. As of now farmers are advised to keep selling their produce and derive profits from their purchase cost and can hold only 15-20% of their quantity now, which could be sold later, considering 10-20% price appreciation is still possible till October.