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Informist, Friday, Aug 9, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat and rice were steady today in key markets across the country, traders said. Wheat prices are seen higher due to more demand during the festival season, traders said. 

Prices of mill-quality WHEAT in Vashi, near Mumbai, were steady at 2,750 rupees per 100 kg, Devendra Vora, a wholesale broker, said. Vora expects prices to rise by 100–150 rupees per 100 kg due to the start of the festival season. Prices were also steady in Madhya Pradesh's Indore market at 2,600-2,621 rupees per 100 kg, traders said.    

Meanwhile, wheat stocks with the Food Corp of India as of Aug 1 were 26.8 mln tn, down 4.4% on year and 5% lower than last month's stocks, according to the nodal food procurement agency. Wheat stocks with FCI have fallen 3% below the buffer norm for Jul-Sep of 27.58 mln tn--operational stock of 24.58 mln tn and strategic reserve of 3 mln tn. The government sets the buffer requirement of food grains for every quarter, and the FCI has to maintain the mandated level.    

The all-India average wholesale price of wheat was 2,785.41 rupees per 100 kg, up 7.83 rupees from 2,777.58 rupees per 100 kg on Thursday, according to the Department of Consumer Affairs.

Prices of basmati RICE were steady at 8,000-8,100 rupees per 100 kg in Vashi, near Mumbai, said Vora. However, rice stocks with the FCI were as of Aug 1 were the highest since 2005 at 32.8 mln tn. Rice stocks have risen nearly 35% on year and were slightly up from 32.6 mln tn a month ago, the data showed.   

Amid the ample rice stocks with the Centre, the government last week allowed states to buy the grain directly from FCI through open market sales, without participating in the electronic auction.

Today, an official told Informist that the government may waive the 20% export duty on non-basmati parboiled rice in view of ample availability of the cereal in the country. The official said the government is waiting for the right time to make the decision, probably after the forthcoming state assembly elections. The Directorate General of Foreign Trade will issue a notification once the decision is made. 

The government had in June last year discontinued the sale of wheat and rice under the open market sales scheme to states to control food inflation and to protect consumers. Under the open market sales scheme, the government fixes the price of rice and wheat and sells them to bulk buyers such as states and private millers through electronic auctions.

The all-India average wholesale price of rice was 3,917.96 rupees per 100 kg, up 26.51 rupees from 3,891.45 rupees per 100 kg on Thursday, according to the consumer affairs department.

End

Edited by Aditya Sakorkar

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