Mustard Cake Prices Unlikely To Fall Further

Jaipur (Commoditiescontrol) – Mustard cake prices fell around Rs 100-200/100kg during the past one month as availability of green fodder rose after rainfall. Green grass availability was fairly good due to better rainfall in June rather than July. However, prices of Jaipur mustard cake may rise to around Rs 2,200/100kg in August amid scanty rain in Maharashtra, Gujarat and Western Rajasthan along with prospect of mustard cake exports to China.

But then, prices may fall Rs 50-75/100kg if above mentioned regions receive rain in the next couple of weeks. On the other hand, mustard cake exports to China is likely to start within next 15 days.

Shyam Sundar Agarwal, owner of Ashoka Oil Mills said availability of mustard seed in the country will drop to 7 lakh tons by the arrival of new crop. According to him, “Most of the oil mills have closed their operations amid disparity in mustard oil beyond Rs 4/kg, leading to mustard cake shortage.

“Good inquiries were observed in de-oiled-cake and it was attributed to demand from cattle feed industry and de-oiled-cake manufacturers. However, it was traded at Rs 2,000/100kg earlier in June and presently, trading at Rs 2,080/100kg. Jaipur condition mustard seed may test Rs 5,000 level by August amid tight availability and in that proportion mustard cake may fetch 2,200/100kg,” said Agarwal.

Arun Agrawal, P.R Industries Nadbai said, “Most of the oil plants have been shut down due to disparity in mustard oil and higher mustard seed prices. There is no major downfall witnessed in mustard cake due to tight availability. Mustard oil cake is bidding at Rs 2,100 at Nadbai. However, prices fell nearly Rs 100/100kg in the past one month and is expected to recover shortly.”

Mustard oil cake exports are rising, but volume of exports is still lagging as compared to last year. As per The Solvent Extractor’s Association of India (SEA), mustard oil cake exports in June 2015 were 56,139 tons, which is 60 percent more than a month earlier. However, exports are down by 43 percent compared to June 2014. China may emerge as the largest consumer of Indian mustard cake after Korea. India has reached at an agreement with China to resume exports of oil cake and five solvent plants have been selected for the purpose.

(By Commoditiescontrol Bureau; +91-22-40015533)