New Delhi. Wheat supply and availability remain comfortable in the markets of Delhi, Uttar Pradesh, and Rajasthan, while demand is outpacing it. Sowing of this most important food grain of the Rabi season is continuing vigorously, and early indications suggest that acreage under cultivation could reach a new record level. This will lead to a significant increase in production.

During the week of November 15th to 21st, wheat prices fell by ₹25 to ₹2780/2800 per quintal in Delhi, ₹45 to ₹2550/2580 in Dabra, ₹70 to ₹2350/2450 in Itarsi, and ₹85 to ₹2400/2535 per quintal in Kota.

However, wheat prices in Ujjain, Madhya Pradesh, and Bundi, Rajasthan, rose by ₹100 and ₹40 per quintal, respectively. Khandwa also saw a rise of ₹50.

During the week under review, Delhi received 5,000-7,000 bags of wheat daily. Similarly, major markets in Gujarat, Madhya Pradesh, Rajasthan, and Uttar Pradesh are also seeing good wheat supplies.

The Food Corporation of India (FCI) commenced multiple wheat auction sales on November 12th under the Open Market Sale Scheme (OMSS). However, millers/processors showed little interest in purchasing government wheat, and only 73,000 tons of wheat was purchased against an offer of 200,000 tons.

Stock limits are in place on wheat, and the upcoming harvest is expected to be robust. The government has projected a record production of 117.9 million tons of wheat for the 2024-25 season. This is likely to continue to exert pressure on the market. In some places, prices have fallen to around or below the minimum support price. This may make it difficult for the Food Corporation to sell its stock at the current reserve price.