Weekly Review-Wheat

23-Nov-2024 06:15 PM

Wheat prices fall due to reduced demand at high prices

Weekly Review – Wheat Prices (16-22 November)

Wheat prices saw a decline during the week of 16-22 November, as demand softened in the face of high prices. Despite the drop in prices, millers and processors are still facing challenges, with no supply of government wheat and a lack of approval for duty-free imports from abroad. Meanwhile, wheat sowing is gaining momentum, and the higher market prices, coupled with an increase in the government’s support price, are expected to encourage more sowing.

Delhi Market Overview:

• Wheat prices from UP and Rajasthan in Delhi dropped by Rs 110, reaching Rs 3080 per quintal. Daily arrivals ranged from 4,000 to 10,000 bags.
• In Rajkot, Gujarat, wheat prices rose by Rs 150 to Rs 3000-3350 per quintal. Prices in Indore, Madhya Pradesh remained stable at Rs 2830-3380 per quintal, while Dabra and Ujjain saw a price dip.
• The price fell by Rs 70 in Itarsi and recorded a Rs 35 drop in Kota Mandi (Rajasthan).

Uttar Pradesh Market Overview:

• In Shahjahanpur Mandi, wheat prices fell by Rs 60 to Rs 2750 per quintal.
• In markets like Sitapur, Gorakhpur, Gonda, and Mainpuri, wheat prices decreased by Rs 10 to Rs 70 per quintal.

Stock and Government Action:

• The government has limited wheat stocks in warehouses, which are being used cautiously. However, they assert that stockists and large producers hold a sufficient quantity, ensuring steady supply to mandis.
• New wheat supplies are expected to arrive by March-April next year, with current stock being used strategically until then.
• The government has raised the Minimum Support Price (MSP) for wheat from Rs 2275 per quintal to Rs 2425 per quintal this year, which is expected to spur farmers' interest in sowing.

Overall, while prices have softened, logistical issues and government actions suggest a potential for future price fluctuations as new supplies come in.