Weekly Review- Wheat

22-Mar-2025 07:54 PM

Wheat prices are soft and strong in some places according to demand and supply


Mixed Price Trends Amidst Changing Supply Dynamics

Wheat prices showed both softening and strengthening trends across different markets, influenced by key factors:

  1. Auction Halt: The government has stopped wheat sales under the Open Market Sale Scheme (OMSS).

  2. New Arrivals: Fresh wheat arrivals have begun in several states, with volumes expected to rise.

  3. Production Estimates: A major discrepancy exists between government and commercial wheat production estimates:

    • Government (Union Agriculture Ministry): 1154.30 lakh tonnes.

    • Roller Flour Millers Federation Survey: 1098 lakh tonnes.

Government Procurement Updates

  • Procurement has officially begun in Madhya Pradesh, Uttar Pradesh, Gujarat, and Rajasthan.

  • Madhya Pradesh & Rajasthan have announced an additional bonus above the MSP of ₹2,025 per quintal.

  • Madhya Pradesh Procurement Price: ₹2,600 per quintal.

Regional Wheat Price Trends

Delhi:

  • New wheat (from Rajasthan & Madhya Pradesh): Fell by ₹60 to ₹2,840 per quintal.

Gujarat:

  • Rajkot: Prices improved by ₹100, reaching ₹2,500-3,100 per quintal.

  • Daily arrivals at Rajkot Mandi have risen to 25,000-30,000 sacks.

Madhya Pradesh:

  • Indore: Prices rose by ₹9 to ₹2,350-3,075 per quintal.

  • Dewas: Wheat arrivals surged to 35,000 sacks on March 17.

Rajasthan:

  • Kota, Baran & Bundi Mandis: Daily arrivals range between 15,000-30,000 bags.

  • Prices: ₹2,400-2,700 per quintal.

  • Baran Mandi: Prices dropped by ₹170 to ₹2,400-2,600 per quintal due to weather-affected quality.

  • The central government has relaxed some quality norms for wheat procurement in Rajasthan.

Uttar Pradesh:

  • Mandis are under price pressure, which may boost government wheat procurement.

  • The national wheat procurement target is 310 lakh tonnes, which appears achievable given the high production levels.

Outlook

With rising arrivals and government procurement in full swing, wheat prices may continue to fluctuate based on demand, supply, and procurement policies.

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