Weekly Review – Wheat

12-Apr-2025 08:10 PM

Fluctuation in wheat due to arrival of new goods and buyers' buying

New Delhi. Harvesting and preparation of new wheat crop and supply in mandis has started in all major producing states and it is being purchased by government agencies as well as private firms and flour millers. As a result, during the week of 5-11 April, the price of wheat was seen to be high at some places and soft at others.

Delhi

The price of wheat from UP / Rajasthan in Delhi slipped by Rs 15 to Rs 2615/2620 per quintal and the price of local wheat in Indore fell by Rs 415 to Rs 2400/2610 per quintal.

Madhya Pradesh / Rajasthan

It is worth mentioning that the government is purchasing wheat from farmers at the rate of Rs 2600 per quintal in Madhya Pradesh and Rs 2575 per quintal in Rajasthan because an additional bonus of Rs 175 and Rs 150 per quintal has been announced over and above the minimum support price (MSP) of Rs 2425 per quintal. During the week under review, the price of wheat increased by Rs 250 in Dewas, Madhya Pradesh and Rs 222 per quintal in Baran, Rajasthan, while in other mandis, its prices fluctuated by Rs 10 to Rs 50 per quintal.

Production

The Union Agriculture Ministry has estimated the domestic production of wheat to increase to an all-time high of 1154 lakh tonnes in the Rabi season of 2024-25, while the production estimate of the industry-trade sector is much smaller than this.

Procurement target

The Food Ministry has set a target of procuring 313 lakh tonnes of wheat this year, which is 47 lakh tonnes more than the actual procurement of 266 lakh tonnes last year. The ministry expects to achieve this target easily.

Stock

Since there is already a stock of more than 100 lakh tonnes of wheat in the central pool, if more than 300 lakh tonnes are procured during the season, its availability will increase.

Government procurement

Government procurement of wheat is happening well in Madhya Pradesh and there are signs of increase in procurement in Rajasthan as well. Inflows will increase rapidly in Punjab after April 14. Everyone's attention is focused on Haryana, Bihar and Uttar Pradesh because no additional bonus is being given there.