Weekly Review-Wheat

31-Aug-2024 05:15 PM

Wheat prices strong due to limited arrival in mandis

New Delhi. There is limited arrival of wheat in important mandis of major producing states and despite the announcement in July, Food Corporation of India (FCI) has not yet started the weekly e-auction of this important food grain from its stock under the Open Market Sale Scheme (OMSS). The festive season has begun and flour millers and processors will need to supply wheat in large quantities.

Delhi

During the week of August 24 to 30, the price of wheat from UP / Rajasthan in Delhi improved by Rs 25 to Rs 2830/2840 per quintal. The price of local wheat in Indore and Harda mandis increased by Rs 100 each to Rs 2750/3400 per quintal and Rs 2670/2850 per quintal respectively.

Rajasthan

Mixed trend was seen in Rajasthan. There, the price of wheat was up by Rs 45 in Kota and down by Rs 50 in Baran. The price was stable in Bundi.

Uttar Pradesh

In the mandis of Uttar Pradesh, the price of wheat fluctuated between Rs 10 and Rs 40. There, the price of wheat came down by Rs 10-15 in Shahjahanpur, Sitapur and Gonda, while it increased by Rs 40 in Mainpuri and Rs 25 per quintal in Etah. In Jalna mandi of Maharashtra, the price of wheat remained at the level of Rs 2600/3500 per quintal.

Stock

In all the mandis, the price of wheat is running higher than the government support price of Rs 2275 per quintal and the government has also implemented storage limit order on wheat. Despite this, there is a lot of arrival in the mandis. This indicates that either the big producers and stockists do not have huge surplus stock of wheat or they are waiting for some more rise in the market. The government is also probably waiting for the right time to release its stock in the domestic market. It is worried about saving its stock till March.