Mustard Seed And Oil Prices Update: What Is The Current Scenario Of Mustard In India?

Mustard is an essential crop in India and is used to produce mustard oil, which is widely consumed across the country. In the last season (March 2022–May 2022), mustard seed prices skyrocketed to Rs 7000 per quintal, while mustard oil prices (1kg) reached over Rs 150. This sudden price hike was well above the Minimum Support Price (MSP) at that time, and farmers had expected to sell their produce when the seed reached Rs 10,000 per quintal. However, their prediction did not come true, and mustard seed prices dropped to around 5500-6000 by September 2022 due to pressure from the overseas oil market, with further expected decline. 

That’s all for last the year’s update. In this article, let’s discuss the ongoing market scenario.  

Current Scenario

Mustard seeds have witnessed a significant price drop and are currently being traded in the range of 5400-5600 per quintal. It is expected that around 100 lakh tons of mustard crop will be produced this year. With more arrivals, lower oil prices, and weaker international market sentiments, mustard seed prices are expected to trade below 6000 per quintal. Due to lower rates of soya, rice bran, and sunflower oil compared to mustard, the demand for mustard oil is relatively less. In the medium term, an increase of around 300-400 per quintal for oilseeds can be expected from the current levels.

Government Support For Mustard Farmers

To boost mustard seed production in the eastern parts of India, namely Assam, West Bengal, and Odisha, the Ministry of Agriculture started supplying seeds, inputs, and other services to farmers in these regions under the National Food Security Mission– Oilseeds in January 2023. This move is expected significantly benefit farmers in these areas and increase mustard seed production.

OFB’s Insight

The fluctuation in mustard seed and oil prices in India highlights the complex interplay between farmers, markets, and government policies. While government interventions can help stabilize prices and support farmers, external factors such as international market trends can also influence prices. The government’s recent initiatives to promote mustard seed production and reduce dependency on imported edible oil could benefit farmers and the country’s economy in the long run.

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