Commodity Outlook – Mustard Seed

Sowing period: October to December
Harvesting period: February to April
Crop season: Rabi

Key growing regions:

  1. Rajasthan – Ganganagar, Alwar, Tonk, Baran
  2. Uttar Pradesh – Agra, Sitapur, Aligarh, Etah
  3. Madhya Pradesh – Morena, Gwalior, Bhind, Shivpuri
  4. Gujarat – Banaskanth, Patan, Mehsana, Surendranagar

Production trend and Stock position:

  • As per the Ministry of Agriculture fourth advance estimate released on August 11, 2021, Mustard Seed production was 101.12 lakh tonnes (LMT) in 2020-21 in comparison to 2019-20 which was 91.24 LMT, up by 10.83 percent
  • Stock positions of Mustard Seed at National Commodity Clearing Limited (NCCL) approved warehouses at Alwar, Bikaner, Jaipur, Kota, Sriganganagar and Tonk locations were down by 12.19 percent. The stocks held as on September 2, 2021 was 15,560 MT as compared to 17,721 MT held on August 2, 2021
  • NAFED procurement 0.03 LMT valued at ₹ 0.014 lakhs under Price Support Scheme (PSS) in 2020-21 from Madhya Pradesh at minimum support price (MSP), however the procurement could not pickup pace due to the ongoing COVID lockdown restrictions
  • India’s exports for rapeseed meal during April-June 2021 was up by 33 percent at 3.84 LMT compared to 2.88 LMT during the same period previous marketing season

Monsoon Update

For the country as a whole, cumulative rainfall during this year’s monsoon season till September 1, 2021 is below Long Period Average (LPA) by 9 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Market commentary: Price outlook

  • The Government had increased the MSP of Mustard Seed by 5.08 percent to ₹ 4,650 per quintal for marketing season 2020-21 compared to ₹ 4,425 in 2019-20
  • Mustard seed prices are likely to trade upwards due to low mandi arrivals declining at all places in the country, which has created a shortage for crushers
  • Mustard seed prices has seen a 5-8 percent rise since July 2021 from ₹ 7,000 – 7,650 to ₹ 8,300 in the current month

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