Weekly Review-Wheat
15-Jun-2024 07:28 PM
Mixed trend in wheat prices due to normal trading at high prices
New Delhi. Ignoring the strong demand of roller flour millers and processors, the Central Government has clearly ruled out the possibility of changing the duty structure on wheat imports for the time being. This means that the 40 percent import duty on wheat will not be abolished in the near future.
Procurement
Government procurement of wheat is likely to be limited to 265-266 lakh tonnes, which is much less than the target of 373 lakh tonnes. No decision has been taken yet to start the open market sale scheme. Flour millers and processors are purchasing wheat from open markets to meet their needs where there is limited arrival of goods. Mixed trend was seen in wheat prices at the national level during the week of June 8 to 14.
Delhi
UP/Rajasthan wheat prices in Delhi rose by Rs 35 to Rs 2670/2675 per quintal, but in Indore, local wheat prices fell by Rs 150 to Rs 2540/3000 per quintal. Wheat prices also fell by Rs 50 in Dabra and Bhopal.
Madhya Pradesh
Government procurement of wheat in Madhya Pradesh fell far short of the set target and now the arrival of goods in the mandis is decreasing. It is worth noting that in this state wheat was being purchased from farmers at the rate of Rs 2400 per quintal, which also included an additional bonus of Rs 125 per quintal over the MSP.
Rajasthan/Uttar Pradesh
Wheat prices in Rajasthan generally remained stable, but in Baran it improved by Rs 25 to Rs 2450/2750 per quintal. In Uttar Pradesh, the price of wheat improved by Rs 40 in Hardoi and Rs 5 in Gonda, while it was soft by Rs 20 in Shahjahanpur and Rs 50 in Gorakhpur. The price of wheat in Jalna market of Maharashtra fell by Rs 200 to Rs 2350/3300 per quintal.
Arrival
Looking at the low arrival of wheat in the major markets of the country, it seems that its actual production has been much less than the government estimate and big producers are trying to suppress its stock in the hope of further increase in prices.