On limited supply Mustard seed has turned costlier in Indian markets amid steady demand from millers.

Traders said prices of the seed have risen 5-8% in the past fortnight to Rs 3,400-3,800 per quintal as local and global millers placed fresh orders.

Prices will remain stable even as the new crop has started arriving in mandis.

Angshu Mallick, chief operating officer at edible oil company Adani Wilmar said, "The new crop arrivals are steady and slightly firmed up but cheaper than what they were in mid-January, We expect prices to remain stable.

According to Mallick, mustard seeds with 42% oil content are being traded at Rs 3,800 a quintal while those with low oil and high moisture content are priced at Rs 3,400.

The government has fixed Rs 3,700 a quintal as the minimum support price (MSP) for mustard this season.

Mustard crop has started arriving in major mandis of Rajasthan, Haryana, Gujarat and Madhya Pradesh. According to the government’s second advance estimate, the crop this year is expected to be 79.12 lakh tonnes as against 67.97 lakh tonnes in the previous year.

Source: http://economictimes.indiatimes.com