Source: Business Standard
Even as the 2012-13 production, at 7.4 million tonnes, was 13 per cent higher than the previous year’s, the good monsoon this year is expected to yield a better winter crop due to good ground water support. However, in general, prices of mustard have trended upwards, even during years of high production, primarily because of high demand for oil seeds and higher minimum support price (MSP) to incentivise production. MSP has risen from ~1,565 a quintal in 2007- 08 to Rs.3,000 a quintal this year. Price pressures, therefore, have been sustained over the past few years; while the average all-India wholesale price of packed mustard oil peaked at Rs. 9,868.46 a quintal in September 2012, it moderated for a few months and once again crossed Rs. 9,800 a quintal in February. There s the expectation though thatwith depletion of inventories, prices will not drop significantly this winter.
IPM data till week ending November 16. The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of the IPM differ from the corresponding Wholesale Price Index (WPI). However, broad trends are in sync.