Mustard seed prices in Jaipur were steady due to a pick up in demand from crushing units. Despite a rise in demand, higher arrivals capped any rise in prices. In Jaipur, the oilseed was sold for 4,125-4,130 rupees per 100 kg, steady from previous day. Arrivals across India were pegged at 95,000 bags (1 bag = 85 kg) compared with 90,000 bags on the previous day. Mustard seed futures in NCDEX, fell on anticipation of a larger crop in 2018-19. The most-active March contract on the domestic exchange was at 3,917 rupees per 100 kg, down 0.3% from the previous close. Mustard seed prices are likely to remain weak going ahead, as the new crop will start arriving in bulk quantities later this month.
India’s mustard output is seen at 7.33 mln tn in 2018-19 (Jul-Jun), according to the average of the estimates of 12 market participants. The projection is 6.2% higher than last year’s estimate of 6.90 mln tn, primarily due to higher acreage and largely favourable weather conditions. The view of the market participants is less optimistic than the government’s target of 8.50 mln ton for 2018-19. The government’s fourth advanced estimate for the mustard crop in 2017-18 was 8.3 mln ton. Production estimates for 2018-19 (Jul-Jun) ranged between 6.90 mln tn and 8.00 mln tn, up from last year’s estimates of 6.30-7.40 mln ton. According to data by the farm ministry, farmers in the country have planted mustard over 6.94 mln ha so far, up 3.4% on year.
The primary reason for the large crop is higher area under mustard in Rajasthan, the largest grower. In 2018-19, farmers in the state have sown the crop over 19% more area at 2.50 mln ha, the farm ministry data showed. Mustard output in the state is seen higher at 3.20 mln tn this year compared with 2.90 mln ton in 2017-18.