Weekly Review - Wheat
07-Jun-2025 01:01 PM
Fall in wheat prices due to impact of stock limit
New Delhi. The Central Food Ministry implemented the order of storage limit on wheat in the last days of last month, the main objective of which was to increase the supply and availability of this important food grain in the domestic market and to curb the rise in prices. It seems that this effort is succeeding to a large extent because during the week from 31 May to 6 June, a huge fall in the price of wheat was recorded in major markets.
Delhi
During the week under review, although the price of wheat remained at the previous level of Rs 2750/2755 per quintal in Delhi, but in Rajkot it fell by Rs 100 to Rs 2400/2800 per quintal, in Indore and Ujjain it fell by Rs 150 each to Rs 2425/2650 and Rs 2425/2850 per quintal respectively and in Kota it fell by Rs 130 to Rs 2425/2470 per quintal. Due to almost stoppage of government procurement at MSP, pressure on wheat prices in the markets has started increasing. The Food Ministry has indicated that in order to provide sufficient stock of wheat to Roller Floor Millers/Processors at a reasonable price, consideration can be given to starting the Open Market Sale Scheme from next month.
Uttar Pradesh
In the major mandis of Uttar Pradesh also, the price of wheat softened by Rs 10-20 per quintal, while in Etah the price fell by Rs 75 to Rs 2450 per quintal. On the other hand, the price of wheat in Jalna Mandi of Maharashtra fell by Rs 600 to Rs 2450/2600 per quintal.
Inflow
Almost normal arrival of wheat is happening in the mandis of Rajasthan, Madhya Pradesh and Uttar Pradesh, but its buying has weakened. It seems that the buyers are not willing to buy wheat at high prices. At present, the millers-processors have a good amount of stock and they are also expected to get government wheat in the coming time.
Stock Limit
With the implementation of storage limit, traders and stockists are also reluctant to buy wheat in large quantities. Due to government strictness, it seems difficult for wheat prices to rise sharply in the near future.