Weekly Review-Wheat
31-May-2025 09:07 PM
Pressure on wheat prices due to implementation of stock limit
New Delhi. After the implementation of storage limit (stock limit) by the Central Government from 28 May, the pressure on the wholesale market price of wheat has started increasing. However, during the week of 24-30 May, the price of wheat in Delhi remained stable at Rs 2750 per quintal and there was no significant fluctuation in Rajkot as well, but in Indore it fell by Rs 210 to Rs 2450/2870 per quintal and in Itarsi it fell by Rs 50 to Rs 2500/2550 per quintal.
Rajasthan
The price of wheat in Kota and Bundi of Rajasthan came down by Rs 50 each. There was limited fluctuation in Uttar Pradesh. There, the price of wheat rose by Rs 10 in Shahjahanpur and Rs 20 in Gorakhpur, while it softened by Rs 10 in Hardoi, Rs 14 in Sitapur and Rs 25 per quintal in Gonda.
Prices
In most of the mandis, the price of wheat is running higher than the minimum support price (MSP) of Rs 2425 per quintal set by the Central Government. The Union Agriculture Ministry has estimated that the domestic production of wheat will jump sharply to an all-time high of 1175.10 lakh tonnes during the current season, which is much higher than last year's record production of 1135 lakh tonnes.
Record production
The Food Ministry is surprised that despite the historic record production and abundant purchases by the private sector, there is an atmosphere of bullishness in the prices of wheat. With the aim of bringing down the prices, the order of storage limit on wheat has been implemented and preparations are being made to release the stock of wheat from the central pool to the market under the open market sale scheme.
Uttar Pradesh
In Uttar Pradesh, the government export of wheat fell much below the target, although it is the country's largest food grain producing state. This means that there is a good stock of wheat with the farmers which has been kept in reserve to be sold in the off season of supply during the coming months. Private purchase of wheat has been good in UP.