Weekly Review-Wheat
27-Jul-2024 04:37 PM
Some improvement in the price of wheat due to limited arrival in the mandis
New Delhi. There is limited arrival of wheat in the mandis of major producing states and Food Corporation of India (FCI) has not yet started the process of weekly e-auction of wheat under the Open Market Sale Scheme (OMSS), due to which millers and processors have to buy it from the open market. As a result, during the week of July 20 to 26, the price of wheat increased at some places and decreased at others.
Delhi
The price of wheat from UP / Rajasthan in Delhi fell by 25 rupees to Rs 2660 per quintal. The price of wheat in Khandwa of Madhya Pradesh also weakened by 50 rupees, but increased by 100 rupees in Rajkot of Gujarat, 20 rupees in Dabra of Madhya Pradesh, 50 rupees in Harda and 20 rupees in Itarsi. The price of wheat rose to Rs 70 per quintal in Kota, Rajasthan and Rs 25 per quintal in Bundi.
Uttar Pradesh
In Uttar Pradesh, the price of wheat either remained stable at the previous level or increased by Rs 15-20. The price softened by Rs 5 each in Sitapur and Mainpuri, while it improved by Rs 15 in Hardoi and Rs 20 in Gonda.
Stock / Production
The government has some surplus stock of wheat, the sale of which can be started from next month. Imports from abroad are almost closed because a heavy customs duty of 40 percent is imposed. Farmers and traders do not have a huge stock of wheat. The government has estimated a record production of 129 lakh tonnes of wheat this year, which is much more than the estimates of the industry and trade sector. The lack of increase in supply in the markets despite the imposition of stock limits is an indication that the actual production of wheat has been much less than the government estimate. Government procurement could also reach only around 266 lakh tonnes, which is only 4 lakh tonnes more than last year. If the government tries to unload more wheat during the festive months of August-October, there may be a shortage of it in the market from December to March.