Higher Mustard Sowing Raises Production Outlook; Prices Expected to Firm by ₹1–1.5 Before New Crop Arrival

Encouraged by strong mustard prices, farmers have increased sowing across all major producing regions this season. With weather conditions remaining favorable so far, mustard production is estimated to rise by around 1.4–1.5 million tonnes. Despite the higher production outlook, firm buying support from oil mills at lower price levels is likely to push mustard prices up by ₹1–1.5 per kg before the arrival of the new crop. Mustard sowing has increased significantly nationwide, driven by prices touching ₹7,650 per quintal in Jaipur for 42% condition mustard. According to experts, last year mustard was sown over 8.657 million hectares across major producing states such as Uttar Pradesh, Haryana, Rajasthan, and Madhya Pradesh. This year, sowing has already reached 8.936 million hectares, and the sowing season is now nearing completion. Considering the current sowing levels and favorable weather conditions, mustard production is estimated at around 12 million metric tonnes. Last year, the All India Oilseeds Seminar had projected mustard production at approximately 11.1 million tonnes, but due to crop damage caused by strong winds in parts of Rajasthan, actual output was reduced to 10.5–10.6 million tonnes. On the international front, strong prices of palm oil and other edible oils, especially in Indonesia and Malaysia, have supported domestic mustard prices. During the current season, mustard traded as high as ₹7,650 per quintal in Jaipur. After touching a recent low of ₹7,125 per quintal last week, prices have recovered to around ₹7,225 per quintal, and further upside of ₹1–1.5 per kg is expected before the new crop enters the market. Crop conditions are reported to be excellent across regions. If weather conditions during February and March remain normal, production is likely to reach the projected 12 million tonnes. Although stocks are currently available in mandis, rising prices of other edible oils and strength in soybean oil are expected to lend further support to mustard prices. Market participants are advised to sell stocks gradually and hold some quantity at current levels, as near-term firmness is expected. Mustard oil, which earlier traded at ₹172 per kg, corrected to ₹142 per kg and is now quoted around ₹145–146 per kg. Before the arrival of the new crop, prices may rise to ₹150–151 per kg, though traders are advised to book profits at regular intervals.

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