Mustard Market Insights: Production, Arrivals, and Stock Dynamics for 2024
Strong Production Underpins Market Stability
India’s mustard market has shown resilience and stability, thanks to significant production levels. The 2023-24 Rabi season saw mustard production reach 12.3 million tonnes.- Rajasthan emerged as the leading producer with 5.3 million tonnes,
- followed by Uttar Pradesh with 1.8 million tonnes,
- Madhya Pradesh with 1.6 million tonnes,
- Punjab-Haryana with 1.2 million tonnes,
- Gujarat with 0.5 million tonnes,
- other states, including Bengal and Bihar, contributing 1.9 million tonnes.
Consistent Monthly Arrivals Support Market Supply
Mustard arrivals in Indian mandis have remained consistent throughout the first five months of the 2024-25 marketing season, contributing to market stability.- March 2024: Farmers brought 1.55 million tonnes of mustard to mandis, with an additional 10,000 tonnes delivered to government procurement centers.
- April 2024: 1.5 million tonnes reached the mandis, while procurement centers received another 1.38 million tonnes.
- May 2024: Mandis saw 1.1 million tonnes arriving, supplemented by 0.56 million tonnes at procurement centers.
- June 2024: 0.9 million tonnes were delivered to mandis, and procurement centers handled 0.05 million tonnes.
- July 2024: Mandis received 0.85 million tonnes, though government procurement halted, leading to no additional arrivals at the centers.
Ample Stocks Ensure Continued Market Stability
As of March 1, 2024, mustard availability for the 2024-25 marketing season totaled 12.8 million tonnes. This included 11.6 million tonnes from current production and 1.2 million tonnes of old stock.NAFED/HAFED, holding 0.75 million tonnes, increased their stock to 2.75 million tonnes with new purchases during the season. Out of this, 0.025 million tonnes have already been sold. By August 1, 2024, after selling 7.9 million tonnes from the original production, the remaining mustard stock stood at 3.7 million tonnes. These strong stock levels suggest that the market will remain stable, even as arrivals in mandis begin to decrease.