New Delhi. During the week of 26 April-2 May, prices softened in the major mandis of Uttar Pradesh, the country's most prominent wheat producing state. Uttar Pradesh's performance in terms of government procurement of wheat remains a matter of concern because wheat procurement has not been possible even up to one-third of the target of 30 lakh tonnes, whereas government procurement of wheat in Punjab, Haryana and Madhya Pradesh has reached very close to the target and above 50 percent in Rajasthan.

During the week under review, the price of wheat in Delhi improved by Rs 125 to Rs 2650 per quintal, in Rajkot it increased by Rs 200 to Rs 2400/3200 per quintal and in Indore it jumped by Rs 585 to Rs 2375/3075 per quintal. Wheat prices also improved in some other mandis of Madhya Pradesh. In Kota and Baran Mandi of Rajasthan, the price of wheat increased by Rs 80 and Rs 140 to Rs 2385/2680 per quintal and Rs 2370/2825 per quintal respectively, while the price remained stable in Bundi.

Wheat prices softened by Rs 10 to Rs 35 per quintal in various mandis of Uttar Pradesh. Flour millers and traders/stockists are buying wheat in good quantity there, due to which the expected increase in government purchase is not happening. In Jalna Mandi of Maharashtra, the price of wheat increased by Rs 150 to a high level of Rs 2525/3300 per quintal.

Wheat arrival in Delhi was 12 thousand sacks in the first two days, but later it decreased and came down to 4 thousand sacks at the end of the week. The flow of wheat supply in the mandis of Gujarat and Madhya Pradesh has started slowing down but a large quantity of wheat is reaching the mandis of Rajasthan, due to which the pace of procurement is increasing there. In some mandis of Uttar Pradesh, an average of about 10 thousand sacks of wheat are arriving daily, but government agencies are facing tough competition or a tough challenge from private traders in its procurement. The situation is the same in Bihar.

The government has increased the target of wheat procurement to 322.70 lakh tonnes and its procurement is being done in Punjab, Haryana and Madhya Pradesh, due to which the total actual quantity can reach the target or very close to it. The matter is stuck only in Uttar Pradesh. The target of procurement of wheat has been set at only 2 lakh tonnes in Bihar and 1 lakh tonnes in Gujarat, which does not matter much.