Pressure on Prices Likely Due to Heavy Arrival of New Mustard Crop
In March, major producing states saw a large arrival of approximately 14.5 lakh tons of mustard in their markets, with nearly 50,000 tons also reaching government procurement centers. The government agencies procured mustard at a minimum support price (MSP) of ₹5,950 per quintal, while wholesale market prices fluctuated. Traders, stockists, and millers/processors showed strong interest in purchasing mustard at lower prices. It is believed that with the increase in government procurement, the prices of this important oilseed may witness some strengthening. The central government has already granted permission for mustard procurement in major producing states such as Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, and Gujarat, with the quantities specified. Procurement centers have been set up in these states, and the process is expected to gain momentum in April. Farmers are eagerly awaiting the commencement of this procurement. According to the Ministry of Agriculture, domestic mustard production for the 2024-25 rabi season is estimated to be 12.87 million tons, while industry and trade organizations project it to be around 11.125 million tons. Typically, the highest supply of mustard occurs between March and May, after which the pace of arrival begins to slow down. Government agencies are also active in procurement during April and May. Although a decrease in the sowing area may lead to a slight reduction in mustard production, the quality of the crop is reported to be very good. Trade analysts note that, from the outset, dry mustard with low moisture content and high oil content has been arriving in the markets, leading to smooth purchases by traders. However, farmers are facing challenges in securing attractive or profitable prices for their produce. The weather conditions for the harvest of mustard in the key producing states remain favorable, with an estimated 5.1 million tons expected from Rajasthan and 1.5 million tons from Uttar Pradesh.