Weekly Review - Wheat

10-Aug-2024 04:07 PM

Wheat prices rise due to delay in sale of government stock

New Delhi. Although the Food Ministry had given the green signal to Food Corporation of India to sell wheat under the Open Market Sale Scheme (OMSS) in July itself and also fixed its minimum reserve price, but the Food Corporation has not yet started the process of weekly e-auction. This process was expected to start from August 1 or the first week of August. Due to this, the market price started stabilizing, but when it did not start, the price of wheat in the markets increased in the week of August 3-9.

Delhi

During the week under review, the price of wheat from UP / Rajasthan in Delhi increased by Rs 60 to Rs 2760/2770 per quintal and the price of wheat from MP in Indore jumped by Rs 200 to Rs 2650/3200 per quintal. Dewas also witnessed a rise of Rs 200 while in Rajkot of Gujarat the price improved by Rs 50. In Khandwa and Bhopal of Madhya Pradesh, the price of wheat was up by Rs 20 and Rs 30 respectively while in Itarsi it rose by Rs 150 to Rs 2625/2750.

Rajasthan

In Kota Mandi of Rajasthan, the price of wheat was down by Rs 25 while in Baran it rose by Rs 35 and in Bundi it rose by Rs 75. In the Mandis of Uttar Pradesh also, the price of wheat increased by Rs 25 to Rs 86 per quintal.

Arrival

Limited arrival of wheat is being received in all the major Mandis while storage limit is also applicable on it. Millers/processors are mainly dependent on Mandis for the purchase of wheat.

Reserve price

The government has fixed the reserve price of wheat at Rs 2325 per quintal for FAQ category and Rs 2300 per quintal for URS variety, while freight charges will also be added separately. Despite this, the market is in a bullish mood as the sale process has not started yet.

Demand / Consumption

The demand and consumption of wheat products increases during the festive season, so millers want to stock it, but they are not getting enough wheat to meet their immediate needs.