Mustard Oil Prices Explained

Mustard oil prices feature unstable market dynamics across the global region. For instance, its value rose in North America due to the following weeks of dry weather that resulted in low crop yields.  

Similarly, its prices increased in India due to the country’s imposed tax on vegetable oil imports. However, it cooled off in the second half of this year because of the early mustard crop harvest, which led to a significant supply. 

Overall, these fluctuating mustard oil prices present a volatile nature of this commodity. 

Why are mustard oil prices fluctuating?

1. Quality Standard

Mustard oil prices depend on its quality. For example, higher-quality products that come with improved taste, nutritional benefits, and safety fair well in the market.

As a result, manufacturers can charge higher rates which reflects consumers’ willingness to pay extra for the assurance of better taste, safety, and quality associated with mustard oil that meets set quality standards.

2. Crushing and Refining Costs

Crushing and refining are essential for improving the quality of mustard oil by removing contaminants and unwanted flavors.

For instance, high refining prices indicate the use of advanced and extensive refining techniques that help produce a final product of the highest quality. Therefore, mustard oil prices will increase in direct correlation to its quality.

3. Competition from other Vegetable Oil

If substitute oils are cheaper or have similar qualities, this affects mustard oil demand and prices. Generally, the market’s reaction to pricing shows how important it is for mustard oil to keep up with what customers want and market trends.

Overall, mustard oil needs to have pricing strategies that compete well. Additionally, it must adjust to what customers want to stay ahead in the market.

4. Consumer Demand

Consumer preferences hold the power to decide the demand and price for mustard oil. For example, a shift towards healthier cooking oils or those with particular qualities has the potential to influence mustard oil value.

Which variables impact the price of mustard oil?

• Quality Standard
• Crushing and Refining Costs
• Global Edible Market
• Consumer Demand
• International Trade
• Competition from other Vegetable Oil

Where does mustard oil come from?

The mustard plant belongs to the Brassicaceae family which also includes broccoli and cabbage. Additionally, the powerful and aromatic seeds of mustard plants are used to make mustard oil.

Mustard oil is widely used in food, especially in northern India, where it is considered a staple ingredient in many dishes. There are two main types of mustard:

White or Yellow Mustard – This variety has the mildest flavor between the two types. Its seeds are light yellow and larger compared to brown mustard seeds.

Brown Mustard – It has a spicier and more intense flavor compared to yellow mustard seeds. Additionally, its seeds are smaller than yellow mustard seeds and their color varies from light to dark brown.

Here is an overview of the mustard oil process:

1. Cultivation and Harvesting – Mustard plants are cultivated and the seeds are harvested once they reach maturity.

2. Cleaning and Sorting – The harvested mustard seeds are cleaned to remove impurities such as dust, dirt, and other debris. Additionally, sorting is done to eliminate damaged or discolored seeds.

3. Seed Crushing – The cleaned and sorted seeds are crushed. Crushing involves pressing or grinding the seeds to extract the oil.

4. Oil Extraction – The oil extraction process involves separating the oil from the seed cake. Also, it is done using hydraulic presses or by using solvent extraction methods.

5. Oil Filtration – The extracted mustard oil is filtered to remove any remaining impurities or solid particles as it helps improve the clarity and purity of the oil.

6. Packaging – Mustard oil is packaged in bottles, cans, or other containers for retail or industrial use.

7. Quality Control – Throughout the entire process, quality control measures are implemented to ensure that the oil meets safety and quality standards. This includes testing for factors such as acidity, color, odor, and overall composition.

What are the uses of mustard oil?

Mustard oil has been used for cooking in some areas for a long time, although its popularity changed depending on factors like personal taste and health benefits awareness.

Apart from cooking, it’s used in food preservation. Furthermore, it is well known for its distinct pungency and aroma. Mustard oil has some industrial applications such as:

1. Biodiesel Production – Mustard oil has the potential to be transformed into biodiesel, a renewable and environmentally friendly fuel suitable for use in diesel engines.

2. Plastic Industry – A useful application for mustard oil is as a plasticizer for polyolefins, which are artificial polymers widely used in the building, automotive, and packaging industries. Also, they reduce stiffness and brittleness in plastics by acting as plasticizers, increasing their flexibility and durability.

3. Textile Industry – It’s used as a dyeing agent for textiles, especially for natural fibers such as cotton and silk. Fabrics are dyed yellow or orange with mustard oil, which also makes them softer and more glossy.

4. Paper Industry -Mustard oil contains erucic acid,  a fatty acid that improves the strength and durability of paper fibers. Additionally, it decreases the quantity of lignin and hemicellulose in paper pulp, reducing production costs and improving paper brightness.

5. Lubricant Industry – An alternative lubricant for numerous machinery and equipment that demands great efficiency and low friction. Moreover, it has good thermal stability, oxidation resistance, anti-wear properties, and viscosity index.

What is the future price of mustard oil?

The world market for mustard oil is expanding as more people become aware of its therapeutic advantages, which include anti-inflammatory, anti-fungal, antibacterial, and antioxidant properties.

Another contributing factor is the rising demand for cooking oils due to their consistency and health advantages.

Additionally, its market is expected to grow due to its increasing use in medicines and cosmetics. Furthermore, it’s effective in treating various skin and hair problems which contributes to its rising popularity in these industries.

Therefore, the average price of mustard oil may range from US$0.5 to US$1 per liter by 2028.