Mustard Prices Up On Falling Stocks

The prices of mustard and mustard oil in the domestic market have gone up by 10-12 per cent since November on fall in crop output and a decline in stocks with the National Agricultural Cooperative Marketing Federation (Nafed). In Delhi, spot mustard price has jumped from Rs 1,625-1,850 per quintal to Rs 1,850-2,030 over the period. Consequently, price of mustard oil has also increased from Rs 4,300 a quintal to Rs 4,700. According to the ministry of agriculture, the area under rapeseed mustard has declined by more than 9 per cent in this rabi season. About 65.43 lakh hectare has been sown under rapeseed mustard, as on December 21, significantly lower than the 71.80 lakh hectare sown over the same period last year. Farmers in Rajasthan, Madhya Pradesh, etc have shifted from oilseeds to wheat and chana as they expect them to give better returns. In 2005-06, the country had a record mustard production at 78.87 lakh tonne against 76 lakh tonne in 2004-05. Currently, Nafed is left with only 13 lakh tonne of mustard.