India’s mustard oil market witnessed a steady price recovery in May 2026 after experiencing a decline in April, supported by improving domestic demand, firmer export enquiries, and tightening supply conditions. The market had softened in April due to peak rabi harvest arrivals, higher crushing activity, and improved logistics that increased finished oil availability and pressured lower prices. However, in May, reduced mustard seed arrivals after the harvest peak eased supply pressure on the market and strengthened pricing sentiment among crushers and traders. Demand from households, packaged food manufacturers, snack processors, and the food-service sector remained stable during the month, while export interest from Asian and Middle Eastern buyers further supported the upward trend. Additionally, firmer global palm and soybean oil prices improved inter-oil arbitrage dynamics, indirectly boosting mustard oil values in India. Market participants expect prices to remain moderately firm in the coming months due to balanced supply-demand fundamentals and stable crushing activity, although the approaching monsoon season may introduce procurement caution and temporary logistical challenges across key consuming regions.
