The price of mustard will increase in July
It is known from the sources that mustard prices have increased from USD 0,61 to 0,64 per kg at Jaipur plant. It might further increase to USD 0,67. The main reason could be that after the drastic fall in the price of mustard, all the depots were empty and demand was seen at a lower price and its (mustard oil) demand for making pickles in the month of June – July will increase.
Also due to the weather disturbance due to the cyclone, there was a huge drop in the arrival of mustard in the markets across the country; the supply of mustard in the market had decreased. Further, due to the effect of the forecast of El Nino, prices of foreign edible oils also increased and its effect was also visible.
Foreign market effects
In foreign markets, the price of edible oils is increasing due to the effect of American biofuel blending and El Nino effects. The price of edible oils will be determined by the fluctuations in the foreign market. India is dependent on edible oils and it imports 60% of edible oils. If it increases further, the mustard oil prices will also increase.
Considering the above factors in mind and to focus on reducing inflation, the Indian government has taken initial steps to halt the massive upsurge in mustard oil prices.
Mustard procurement days are extended by NAFED
NAFED will continue to procure mustard till the 15th of July. Previously it was decided to procure mustard till 30th June, but now procurement days are extended which will help farmers to sell their crops to NAFED. New registration has been closed from 25th June, but for those who have already been registered; their purchase date has been extended till 15th July. Due to the extension of the purchase date by NAFED, the country’s total purchase has crossed 1 Million Tonnes. Further, NAFED will start the sale of mustard in August, due to which there will be no possibility of a rise in the prices of mustard oil.
Dark side of farmers – Farmers are getting less prices compared to the previous year
Mustard farmers had seen the price of mustard at USD 0,79 – 0,85 per kg in September – October 2022. Presently it is playing around USD 0,54 – 0,56 per kg. Generally, farmers do not change the cropping pattern but 15 to 20% of farmers are there who change the cropping pattern, depending on the price they get for their crops. Mustard farmers are getting lower prices and many other spice commodities like cumin are getting high prices. If this continues, “sowing of mustard may decrease in the new season” but it is too early to say whether it will happen or not!
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