Source: Business Standard

 

Last year, production was 7.8 mn tonnes, the second highest. The good monsoon in 2013 was expected to yield a better winter crop. However, the weather may play spoilsport, as it did in the case of soybean in the kharif season. Hence, till the harvest comes in, the possible impact of rain in northern India will cast doubts on the output. Despite higher outputs, however, prices of mustard have generally trended up due to high demand and rising minimum support prices. Rapeseed-mustard's MSP has risen from Rs.1,565 a quintal in 2007-08 to Rs.3,000 a quintal in 2013-14. This has led to sustained price pressures over the past few years. While recently, prospects of a good crop have steadied the price of mustard oil to Rs.8,500-9,000 a quintal, a significant drop is not expected.

IPM data till week ending January 18. 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.