Mustard Prices Soar ₹100, Basmati 1509 Hits ₹4,500: What’s Driving the Rally?

Key Highlights

• Mustard prices rise ₹20-₹100 per quintal across key markets.

• Alwar and Morena record ₹100 gains.

• Basmati 1509 reaches ₹4,500 per quintal.

• 1509 gains about ₹509 in one week.

• Export demand remains crucial for basmati prices.

Mustard and basmati rice prices are showing renewed strength in major agricultural markets. Mustard prices gained ₹20-₹100 per quintal across key markets in Rajasthan and Haryana, while Basmati 1509 rice recovered around ₹509 in a week to reach ₹4,500 per quintal on September 28, 2026.

The movement comes as farmers, traders and millers track fresh crop arrivals, buying activity, domestic edible oil demand and international trade. Global developments in the rapeseed-canola and edible oil markets could also influence mustard prices, while strong overseas demand remains important for Indian basmati rice.

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Mustard prices rise by up to ₹100

Mustard prices climbed across several major markets on September 28. Alwar recorded one of the sharpest gains, with prices reaching ₹8,250 per quintal after rising ₹100. Morena also gained ₹100 to ₹8,200 per quintal.

Mustard procurement prices also strengthened at the plant level. Goyal Kota plant quoted ₹8,400 per quintal, while plants at Shamshabad, Digner and Morena reported prices of up to ₹9,300. Alwar and Kota plants recorded ₹9,250 per quintal.

Global edible oil trade remains important

International edible oil and rapeseed-canola markets are increasingly important for India's mustard prices because India imports a substantial share of its edible oil requirement.

The government recently reduced the basic import duty on crude palm oil and soybean oil from 10% to 5%, while the duty on crude sunflower oil was reduced to zero. Greater availability of imported edible oils could affect their competitiveness against domestic mustard oil.

Global canola trade is also changing. In September 2026, private Chinese crushers purchased around 68,000 tonnes of new-crop canola from Australia, highlighting changing procurement patterns and trade flows.

Domestic demand for rapeseed-mustard oil remains another important factor. USDA's India analysis has also highlighted domestic mustard and rapeseed oil demand, along with Chinese demand for rapeseed meal, as factors influencing the market.

Basmati 1509 recovers ₹509 in a week

Basmati rice has also witnessed a strong price recovery. Nipun 1509 rice increased from ₹3,991 per quintal on September 21 to ₹4,500 on September 28, marking a gain of around ₹509 in just one week.

The variety touched ₹4,506 on September 24 before easing slightly and returning to ₹4,500 on September 28. The movement indicates firm buying interest in 1509 rice.

Other basmati varieties also continued to command strong prices:

Export demand supports Indian basmati

India's position in the global basmati rice market makes international demand an important factor for domestic prices. According to APEDA, India exported 6.52 million metric tonnes of basmati rice during FY2025-26, generating ₹50,138.28 crore, or around $5.67 billion, in export value.

Saudi Arabia, Iran, Iraq, the UAE, Yemen and the United States were among the major destinations for Indian basmati rice.

With the arrival of the new crop, domestic supply will influence prices, but purchases from international buyers and the competitiveness of Indian rice will also remain important.

What could happen to prices next?

The current trend remains firm for both mustard and Basmati 1509, but prices can change quickly as fresh arrivals increase. New crop arrivals, mill purchases, domestic edible oil consumption, international oil prices and developments in the rapeseed-canola market will influence mustard prices.

For basmati, export demand, international purchases, new crop arrivals and price competitiveness will remain key factors. Farmers and traders may therefore need to track both domestic mandi prices and global market developments closely.

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CMV360 Says

Mustard and basmati rice markets are showing renewed momentum, with mustard gaining across major mandis and Basmati 1509 recovering sharply. However, prices will depend on fresh arrivals, mill buying, domestic consumption and international trade. Global edible oil and rapeseed-canola developments could influence mustard, while export demand will remain central to basmati prices. Farmers and traders should closely monitor market movements before making selling decisions.