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Markets watchdog Sebi on Friday barred commodity exchange NCDEX from launching new mustard seed contracts till further orders amid efforts to curb rising prices of mustard oil. The latest direction for the National Commodity & Derivatives Exchange Ltd (NCDEX) will come into immediate effect. In respect of running contracts, no new position will be allowed to be taken. Only squaring up of position will be allowed, Sebi said in a release. "No new mustard seed contract shall be launched till further orders," it said. Edible oil industry body Solvent Extractors Association's (SEA) Executive Director B V Mehta said Sebi has taken this decision to check further rise in prices of mustard oils. Much of the mustard seed stock has been crushed and as a result there is pressure on prices, he added. Tight supply of mustard seeds has put pressure on wholesale and retail prices of mustard oil. As per the government data, the average retail price of mustard oil (packaged) increased to Rs 183.
Mustard SeedMustard seed arrivals have entered a lean period, with daily arrivals of nearly 180,000 bags. Seasonal demand for mustard oil, however, is expected to gather pace when demand from pickle manufacturers gains momentum. Mustard seed crush margins have also turned positive, supporting demand from processors. We expect mustard seed prices to head towards Rs 4,600 a quintal in the coming week.MaizeMaize prices in the Gulabbagh (Bihar) market are trading at Rs 1,330 a quintal. Prices are expected to be about Rs 1,350 a quintal in the coming week, after a robust demand from bordering states, amid lower overall supplies.Prerana Desai,Vice-president (research), Edelweiss Agri Services and Credit, Edelweiss Agri Value Chain Limited