Mustard Prices Outlook: For the last few days, the budget of the kitchen has been affected due to the rapid rise in mustard prices. Mustard demand continued to grow as the lockdown situation gradually normalized, due to which the prices strengthened. There has been a 31 per cent jump in mustard prices in the last one year. Currently, the future contract mustard prices of 18 June 2021 on commodity exchange NCDEX are running close to 5600. However, after a few months, due to the festive season and the wedding season, its price will get support and it can show a level of 6200 by July-August.
Talking about the spot price, its prices are somewhat broken because its arrival has started. Its spot price had gone up to 6500 in February, which has now reached 5600. However, this situation will not remain for long and its prices will soon rise because its demand is very high globally.
Affect on sentiment due to prolonged winter
According to the demand, mustard prices rose due to lack of supplies and a rise in the prices of other edibles oils. Besides, the cold weather remained for a few more days which affected its price. Last year in 2020, the mustard demand was affected due to the corona epidemic, but the price did not break much. After May, prices of crude palm oil rose in the form of biofuel oil, and mustard prices also started rising. Let us know that the prices of oil are almost interconnected, that is, if the prices of one oil rise, then the prices of other oils will also increase because consumption starts to shift towards cheap oil and then its prices also start increasing. On January 1 last year, mustard prices were close to 4700, which are currently running close to 5600.
Mustard can be expensive due to these reasons
- The arrival of mustard has started, but according to the demand the supply is expected to remain tight.
- The summer season has started somewhat early in 2021 this year, due to which there can be a drop in yield.
- Ramadan and weddings season is coming in India, due to which the demand for mustard may increase.
- The price of mustard will also be strengthened that the stock of canola (a type of mustard) in Canada has decreased by 24 per cent to 12.2 million tonnes.
- Soybean crop has been affected due to La Nina effect in Brazil and Argentina.
- Apart from this, sunflower crop was affected in Russia and Ukraine and the sowing of mustard due to drought in Europe. In such a situation, the demand for mustard will remain at the global level.
Mustard production increased by 14%
This time the production of mustard is estimated to increase by 14 percent. According to the Second Advanced Estimate of the Ministry of Agriculture and Farmers Welfare, this time the production of mustard is estimated at 1.04 million tonnes, compared to 91.2 lakh tonnes last year. According to trade estimates, this time the crop can be 85-90 lakh tonnes as compared to 75 lakh tonnes last year. The mustard sowing area increased by 5 lakh hectares to 74 lakh hectares in the 2020-21 Rabi season, due to which production is expected to increase.
