Seed shortage supports mustard oil prices in India

Mustard oil prices in India remain firm, supported by limited seed availability and steady demand from processing plants. Meanwhile, other segments of the edible oil market are showing weaker trends due to cautious buying and competition from imported products, Grain Brokers Australia reported.

Mustard seed arrivals in the domestic market have declined, while farmer-held stocks continue to shrink. Processing plants are actively purchasing raw materials to cover their near-term requirements, with some regions seeing crushers willing to pay higher procurement prices. This is supporting prices for both mustard seed and the oil produced from it.

Another factor supporting the market is the slow start to mustard sowing for the 2026/27 crop. Planting is lagging behind last year’s pace in Rajasthan and other major growing regions. If the gap is not closed in November, seed availability in the next season could be tighter than previously expected.

In contrast, soybean, cottonseed and rice bran oil prices remain under pressure due to subdued demand. At the same time, global palm and soybean oil prices remain high enough to prevent imported products from significantly increasing price competition for Indian producers. A potential lack of rainfall and insufficient soil moisture across key winter crop growing regions pose an additional risk.

According to analysts, mustard oil prices are likely to remain supported in the near term by limited seed availability and active procurement by crushers. Further market developments will depend on sowing progress, November weather conditions and changes in global vegetable oil prices.

Tags: mustard, mustard oil, India