Oil is not well on mustard front

CHANDIGARH: After reporting low yield in the mustard crop, farmers across Punjab and Haryana are holding their stocks for now, expecting an increase in the price in the coming months. The price already has been at an all-season high.

"The price till last week was around Rs 1,980 and though it has come down to Rs 1,850 on Tuesday, I am going to hold my 400 quintal of mustard as I think the price will touch Rs 2,200 per quintal," said Dharamveer, a Barwala farmer who had 10 acres under mustard cultivation. His view is echoed by many other farmers in this mustard growing belt of Haryana.

In Punjab, the expectations are even higher. A trader in the Fazilka area expected the price to go as high as Rs 2,500 to Rs 2,600 for a quintal. "Last year at this time of the year, approximately 200 quintal had been sold to me. This year the figure is as low as 40 quintal. We are seeing an increase of Rs 20-30 per quintal daily," he said.

"The rates have increased but the yield has fallen drastically. Last year the average yield was 10 quintal an acre. This year, it is only five quintal an acre. The traders and commodity exchanges are predicting the rate to further go upward, a reason why farmers are holding their stock," said Anil Singhmar from Dharampura village in Abohar district of Punjab.