Mustard prices have reached the sky. It has been steadily increasing for the last 4 months. It is trading at the highest price in the last 8 years on NCDEX. Mustard prices have crossed Rs 5000 after a long time. It is currently trading at a price of 5444. Apart from the decline in production, there are many reasons, due to which the prices have remained high. Explain that in 2019-20, 7700 metric tons of mustard was produced, while in 2020-21 it is estimated to produce 7650 metric tons.
Festive season and weather increased demand
According to Ajay Kedia, Managing Director of Kedia Advisory, there are many reasons behind the mustard price being the highest in 8 years. The increase in the price of edible oil in the lockdown has helped to increase the prices of mustard. Apart from this, the festive season is going on at this time due to which demand has increased. Mustard has a special medicinal property that it is a better immunity booster, due to which the demand for Kovid 19 has increased rapidly. Mustard oil does not freeze even in cold, so the demand for it has increased even before winter.
Effect of ban on adulteration in mustard oil
The Food Safety and Standards Authority of India (FSSAI) on 23 September banned any adulteration of mustard oil across the country. Its objective is to make 100 percent pure mustard oil available to consumers. Common mustard oil is mixed with mustard oil, 90 percent of which is imported. To ensure the availability of pure mustard oil, the order issued by FSSAI has increased the demand for mustard, which has also led to the rise in mustard prices.
The lockdown imposed due to Corona epidemic is now being gradually removed. Due to this, hotels, restaurants are opening and the demand for mustard is increasing. Apart from this, now the festive season is starting, due to which the demand is increasing.
Prices may fall after November
According to Ajay Kedia, the price of mustard has increased very fast and there may be some correction in it. However, they believe that only after November its prices can come down. According to Kedia, mustard prices can touch the level of 5600-5800 in the next few days.