Mustard oil ruled firm in mandis across Madhya Pradesh, Rajasthan and Gujarat with marginal decline in buying at the higher prices. Mustard oil prices have gone up by Rs 20-40 for 10 kg in the past one week because stockists are busy building inventories amid apprehensions of poor yield this year.
Mustard oil in Indore mandis is ruling at Rs 736 for 10 kg against Rs 697 a week ago. Similarly, mustard oil at Neemuch mandi has gone up by Rs 40 to Rs 730 for 10 kg in the past one week. In Morena, it is ruling at Rs 740 for 10 kg against Rs 705 a week ago. In Kota, it ruled at Rs 735 (Rs 710 a week ago). Similarly in Ganganagar, mustard oil ruled at Rs 745 (Rs 710 a week ago) and Gujarat at Rs 730 (up Rs 40 in a week).
With decline in oilseed production in the country this year — it is expected to be 305 lakh tonnes (324 lakh tonnes) — and further decline in the estimated output of mustard seeds and rapeseed which is estimated to be around 45 lakh tonnes against estimates of 50-55 lakh tonnes made a few days ago,, mustard oil and seeds prices are surging.
Strong global cues with steep rise in the prices of crude oil, bullish futures and buying support from crushers and stockists are also cushioning the bullish trend in mustard oil and seeds, said Mr Kamlesh Nahta, a Neemuch-based mustard seeds trader.
Decline in output and stockists' buying spree have also pushed up prices in Madhya Pradesh mandis. Supported by bullish future and weak arrivals, mustard seeds at Neemuch mandi went up to Rs 3,300 a quintal in the evening (up Rs 50), while at Mandsaur mandi, it gained the same amount to touch Rs 3,200 a quintal.
Last year, prices in State mandis ruled between Rs 2,000- 2,600 a quintal, while in the current year, mustard seeds prices have already touched a new high. Arrival of mustard seeds in Neemuch was recorded at 4,000 bags, while it was 8,000 bags at Mandsaur mandi.