Weekly Review-Wheat
05-Apr-2025 07:01 PM
Pressure on wheat prices due to increased supply of new goods
New Delhi. Supply of new wheat in the markets started from 10-15 March in states like Madhya Pradesh, Uttar Pradesh, Rajasthan and Gujarat, while now the marketing season of its arrival in Punjab-Haryana has also formally started from 1 April. The Central Agriculture Ministry has estimated the domestic production of wheat to increase to an all-time high of 1154.30 lakh tonnes this year, due to which pressure has started increasing on the prices of this important food grain.
Delhi
However, during the week from 29 March to 4 April, UP wheat remained stable at Rs 2650 per quintal in Delhi and the price of local wheat in Indore, Madhya Pradesh improved by Rs 80 to reach Rs 2400-2980 per quintal, but the price decreased in the markets of other states and especially Uttar Pradesh.
Madhya Pradesh
In Madhya Pradesh, the government is procuring wheat from farmers at the rate of Rs. 2600 per quintal and in Rajasthan at the rate of Rs. 2575 per quintal as there is an additional bonus of Rs. 175 and Rs. 150 per quintal respectively over and above the minimum support price (MSP) of Rs. 2425 per quintal announced by the Central Government.
Price
During the week under review, the wholesale market price of wheat fell sharply by Rs. 30 in Itarsi, Madhya Pradesh, Rs. 100 in Kota, Rajasthan, Rs. 50 in Baran and Rs. 50 to Rs. 140 per quintal in various mandis of Uttar Pradesh. In most of the mandis, the price of general average quality (FAQ) wheat has come down to around or below the government support price. Millers-processors and traders/stockists are not in a hurry to procure wheat and are waiting for the market to stabilize. Government agencies have become fully active for the procurement of wheat in all the major producing states.
Production Estimates
It appears that the record production estimates put forth by the government are having a deep psychological impact on the domestic wheat market. The actual production is likely to be less than this but farmers are in a state of confusion. Small farmers may sell their wheat quickly.
Government Procurement
From April to June, there will be a strong supply of wheat in the mandis and government procurement centres and after that a period of decline may begin. The government has set a target of purchasing 313 lakh tonnes of wheat and it is confident that this target will be achieved easily.