Wheat prices likely to remain strong due to off-season supply
09-Nov-2024 01:07 PM
New Delhi. Wheat prices are expected to remain strong due to off-season supply, strong demand from millers and processors and the Central Government not starting sales from its stock under the Open Market Sale Scheme (OMSS). The government has also refused to reduce the 40 percent import duty on wheat and its supply in the markets is decreasing. The sowing campaign for Rabi season MIG wheat has already started.
In South India, the price of wheat for delivery to railway goods warehouses has increased to a high of Rs 3400 per quintal, which is much below the all-time high. In view of this, there is a strong demand from the Central Government by the flour millers to immediately start OMSS. Millers say that if the government does not want to sell wheat from its stock, then it should allow its duty-free import from abroad.
According to a leading industry analyst, there is not enough stock of wheat available in states like Rajasthan, Madhya Pradesh, Haryana and Punjab. Due to the availability of stock only in Uttar Pradesh, a huge surge in prices is being seen. In Delhi, the price has jumped to around Rs 3200 per quintal. The price has also gone up in UP. The equation of demand and supply of wheat has become very complex and it is being received only through private stockists. The government has refused to unload its stock for now.
In fact, storage limit is applicable on wheat and traders-stockists have to give details of their stock on the government portal. The Food Ministry believes that stockists have a huge stock of wheat, so there is no need to import it from abroad. Data from Agmarknet, a subordinate body of the Ministry of Agriculture, shows that the weighted average price of wheat in the premises of Agricultural Produce Marketing Committee (APSP) or wholesale markets is currently running at Rs 2811 per quintal, which is much higher than the minimum support price of Rs 2275 per quintal. According to the data of the Department of Consumer Affairs, the retail price of wheat has increased by 2.2 percent compared to last month and 4.44 percent compared to last year and has now reached a high of Rs. 31.98 per quintal. There is a possibility of further increase in this.