Weekly Review - Wheat Market
01-Mar-2025 07:29 PM
Mandi Price of Wheat Softens Due to Increased Offers in OMSS
The Union Food Minister has increased the weekly sale quantity of wheat under the Open Market Sale Scheme (OMSS) from 4 lakh tonnes to 5 lakh tonnes. This decision aims to provide millers and processors with adequate quantities of government-supplied wheat, reducing their reliance on wholesale markets. This step had a visible effect during the week of 22-28 February, as the price of wheat decreased by Rs 50 to Rs 200 per quintal across most major wholesale markets.
Delhi: In Delhi, the price of wheat from UP/Rajasthan fell by Rs 80, reaching Rs 3200 per quintal. Other major markets also saw price reductions, with wheat dropping by Rs 100 per quintal in Rajkot (Gujarat), Rs 220 in Indore (Madhya Pradesh), and Rs 300 per quintal in Dewas. Other markets in Madhya Pradesh, including Dabra and Khandwa, saw a decline of Rs 150 per quintal, while Ujjain and Itarsi reported drops of Rs 200 and Rs 170 per quintal, respectively.
Rajasthan: In Rajasthan, prices remained stable in the Kota, Baran, and Bundi mandis due to limited trading activity, but wheat prices softened in Uttar Pradesh. For example, Mainpuri saw a decrease of Rs 251, bringing prices down to Rs 2800 per quintal. Shahjahanpur, Sitapur, and Gonda also experienced price drops, ranging from Rs 50 to Rs 70. Jalna mandi in Maharashtra saw a Rs 200 decrease in wheat prices.
Sale / Auction: An important development during the week was the weekly auction conducted by the Food Corporation of India (FCI) on February 27, where 5 lakh tonnes of wheat were offered for sale. Of this, 4.98 lakh tonnes were successfully sold, highlighting the strong interest from millers and processors in government-supplied wheat, which is priced relatively lower. If this level of government wheat supply continues for another one or two weeks, it may further exert downward pressure on wholesale market prices.
Conclusion: Despite the price decline of Rs 100-200 per quintal, wheat prices across markets are still above the minimum support price (MSP) of Rs 2425 per quintal. The increased supply of wheat through OMSS has played a pivotal role in softening market prices, but it remains to be seen whether this trend will continue or if prices will stabilize