Weekly Review-Wheat
26-Oct-2024 06:35 PM
Wheat prices rise due to strong demand from flour millers
New Delhi. Due to limited supply of goods in major markets, government's refusal to offload its stock in the market and strong demand from flour millers and processors, the price of wheat generally increased by Rs 150 during the week of October 19-25.
Delhi
However, due to less purchase of wheat from UP / Rajasthan at high prices in Delhi, its price slipped by Rs 20 to Rs 3070/3080 per quintal, but the price of local product increased in many other markets. The price of wheat increased by Rs 50 in Rajkot, Gujarat, while it was up by Rs 130 in Dabra, Madhya Pradesh and Rs 150 per quintal in Khandwa. However, in Dewas Mandi, it fell by Rs 200 to Rs 2750/3300 per quintal. There was volatility in the markets of Uttar Pradesh and Rajasthan.
Arrival
There is limited arrival of wheat in important mandis of major producing states and it seems that the off or lean season of its supply has begun. This time the minimum support price (MSP) has been fixed at Rs 2275 per quintal, whereas the price is much higher than this in many mandis. In view of this, the government has also increased the price of Bharat brand flour from Rs 27.50 to Rs 30 per kg.
Stock
There is limited stock of wheat in the central pool, so the government wants to use it very thoughtfully. Under its National Food Security Act, a stock of 35 lakh tonnes of wheat has been fixed for allocation in those states where it was stopped one and a half to two years ago. The government believes that the mandi price of wheat is at normal level now. For the next season, its support price has been increased by Rs 150 and fixed at Rs 2425 per quintal.