Wheat Prices Show Signs of Recovery After Sharp Decline: What to Expect in the Market Ahead
17-May-2025 04:55 PM
Wheat Prices Show Signs of Recovery After Sharp Decline: What to Expect in the Market Ahead
★ After a steep fall in wheat prices in mid-March 2025, the market is now showing signs of gradual recovery. Key mandis such as Delhi, Shahjahanpur, and Bulandshahr have witnessed fluctuating trends in recent weeks.
★ In the second half of January, wheat prices on Delhi’s Lawrence Road had peaked at Rs. 3360 per quintal, which dropped significantly to Rs. 2680 by April 7. However, as of today, prices have rebounded to Rs. 2755 per quintal.
★ In Shahjahanpur, prices were around Rs. 3121 on February 21, falling to Rs. 2465 by April 14. A similar pattern was seen in Bulandshahr, where wheat prices dropped from Rs. 3170 in mid-January to Rs. 2370.
★ Despite the fall, prices in these major mandis of Uttar Pradesh largely remained above the MSP (Minimum Support Price). This is primarily due to steady demand and the declaration of bonus incentives in neighboring states, which helped support the market.
★ In the first two weeks of May, wheat prices across Delhi and other regions have ranged between Rs. 2520 and Rs. 2755 per quintal.
★ A key factor impacting the market has been the low level of government procurement in major producing states like Uttar Pradesh. This has resulted in increased supply in mandis and relatively less wheat being bought at MSP rates.
★ However, private buying has picked up recently, leading to improved prices. The rise in prices during peak arrivals and limited procurement may prompt government intervention, possibly starting with stock limits on traders.
★ PDS (Public Distribution System) stock levels are reportedly healthy, supported by initiatives such as distributing three months’ ration at once to free up storage and ensure availability.
★ We expect wheat prices to rise slightly and then stabilize in the coming weeks.
★ Market sentiments remain cautious, and any aggressive policy move by the government could influence further trends.