Weekly Review-Wheat
05-Oct-2024 06:56 PM
Wheat prices rise due to strong demand from millers-processors
New Delhi. With the hopes of wheat sales from government stock under the Open Market Sale Scheme (OMSS) almost over in the near future and strong demand from flour millers and processors, the wholesale market price of wheat rose by up to Rs 100 per quintal during the week of 28 September-4 October. There is limited arrival of goods in the markets and its import is also closed due to the imposition of high customs duty of 40 percent. The government has increased the allocation of wheat under the public distribution system instead of selling it in OMSS.
Delhi
However, during the week under review, the price of wheat from UP / Rajasthan in Delhi softened by Rs 25 to Rs 2990/3000 per quintal, but it rose by Rs 50 in Rajkot, Rs 100 in Indore and Rs 100 per quintal in Dewas. In Madhya Pradesh itself, the price of wheat rose by Rs 65 in Dabra Mandi and Rs 50 in Harda. Itarsi also saw a rise of Rs 20.
Rajasthan
Rajasthan witnessed a mixed trend. There, the price of wheat fell by Rs 20 in Kota to Rs 2700/2830 per quintal, but improved by Rs 10 in Baran and increased by Rs 50 in Bundi to Rs 2680/2800 per quintal. In the markets of Uttar Pradesh also, the price of wheat remained generally strong and an increase of Rs 30 to Rs 60 per quintal was recorded. In Jalna, Maharashtra, the price was down by Rs 100.
Stock
There is limited stock of wheat in government warehouses, while its new goods will take about six months to arrive. Keeping this in mind, the government wants to use its stock very thoughtfully. It seems that when the wholesale market price increases more than necessary, the government can focus on the sale of its stock. The high market price may give farmers a good incentive to increase the area of wheat cultivation in the Rabi season this year. Large producers and stockists have limited stock of wheat while storage limits are also applicable on it. There is doubt about allowing duty-free import of wheat. One section is demanding this but the other section is also opposing it. The price of wheat is running above the MSP in all the mandis.