Mustard- Mustard falls due to improved sowing.

Mustard is the main rabi oilseed crop, after touching a record high in October, it is facing a steady fall. Due to late monsoon showers in mustard growing States, prices have declined by more than 10.5%. Another reason is that a decision by the Rajasthan government to impose stock limits on oilseeds also pressurised the prices.

Prices had firmed up substantially on production concerns due to below-normal rains in the September-October period.

Mustard production was pegged at 63.1 lakh tonnes (lt) in 2014-15, a drop of 20 percent from 78.8 lt produced in 2013-14, according to the Fourth Advance Estimate. Now favourable weather conditions in the main mustard growing States have encouraged farmers to speed up sowing in the last one month.

Even though prices are at record highs, due to high temperature and lack of soil moisture the sowing has been delayed by more than a fortnight.

In mid-November Sowing progress was almost 50% less than the area sown last year but it has now picked up.

Planting had taken place on 54.17 lakh hectares (lh) on December 4, down only 11% from the same time last year (60.91 lh).

The top producer is the Rajasthan, According to the State Agriculture Department, Rajasthan recorded 23.61 lh compared to 25.76 lh last year till December 10. Similarly, Uttar Pradesh and Madhya Pradesh have sown 1.34 lh and 0.73 lh less in the current year from last year.

The prices may be range-bound between ₹4,300 and ₹4,600 a quintal under normal conditions. If there is any upward shock due to unfavourable weather they may surge to above ₹4,800 (CMP: ₹4,585).

Source: http://www.thehindubusinessline.com/