Impact of Lower Sowing and Unfavorable Weather

This season, linseed (flaxseed) production has significantly decreased due to less sowing and unfavorable weather conditions in major producing areas such as Uttar Pradesh, Bihar, and Madhya Pradesh. For the past three years, low prices have discouraged farmers from sowing linseed, leading to a sharp reduction in production. This year, the total production is estimated to be around 0.60 million metric tons, compared to 0.85 million metric tons last year.

During the previous season, linseed prices opened at $0,80-$0,84 per kg in markets like Kanpur, Hamirpur, Banda, Gwalior, Rewa, Satna, Indore, and Bhopal. In March this year, prices were as low as $0,60-$0,62 per kg but rose to $0,77-$0,78 per kg. Due to weak demand, prices have slightly corrected to $0,74-$0,75 per kg.

Increased Demand from Oil Mills and Ayurvedic Medicine Companies

Despite the recent price correction, linseed is witnessing strong buying interest from stockists and oil mills. Additionally, major companies are purchasing linseed for use in Ayurvedic medicines, contributing to market growth. The supply of linseed to oil mills for crushing has been limited, further tightening the market.

With reduced production and increasing demand from herbal and Ayurvedic medicine companies, traders expect linseed prices to rise. Currently, linseed is priced at $0,74-$0,75 per kg, but prices are anticipated to reach $0.84-$0.87 per kg by winter. Herbal companies have already started securing supplies, indicating strong future demand.

Lower Productivity and Farmer Sentiments

In addition to major producing states like Madhya Pradesh and Rajasthan, linseed is also grown in eastern Uttar Pradesh and Bihar. Farmers in these regions report lower productivity per hectare this year, contributing to the overall decrease in production. The old stock of linseed has been gradually depleted, creating a favorable market for current supplies.

Traders believe that the current price of linseed presents a profitable opportunity, with minimal risk. Temporary price fluctuations may occur, but the overall trend points to rising prices due to strong demand and limited supply.

The linseed market is poised for growth, driven by reduced production and increased demand from both the oil industry and Ayurvedic medicine manufacturers. Despite recent price corrections, the long-term outlook for linseed prices remains positive, with expected increases in the coming months.