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Informist, Friday, Aug 30, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat, rice, and maize were steady today in the key markets across the country, traders said. The government's move to allow ethanol distilleries to participate in the Food Corporation of India's weekly rice auctions is likely to support prices, traders said.  

On Thursday, the government said ethanol distilleries can buy up to 2.3 mln tn of rice in the FCI's weekly electronic auctions during Aug-Oct. In July 2023, the government stopped grain-based distilleries from producing ethanol using rice procured from FCI. However, given the surplus availability of rice with FCI, it has been allowed to be used as feed stock for ethanol again. 

Also, the Centre on Aug 1, allowed state governments to buy rice from FCI at a lower rate of 2,800 rupees per 100 kg, against 2,900 rupees per 100 kg earlier. In June last year, the government discontinued the sale of wheat and rice under the open market sales scheme to states to control food inflation and 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. Today's RICE prices were steady from the previous day in Mumbai's Vashi and Vijayawada's Bhavanipuram, traders said.

WHEAT prices in Rajasthan's Kota and Madhya Pradesh's Indore were also steady today due to no new cues, traders said. However, arrivals in Kota were up 1,000 bags (1 bag = 50 kg) at 10,000-11,000 bags, Aniket Mehta, a local trader said. 

Lower domestic wheat stocks and higher demand ahead of the festival season is likely to keep wheat prices elevated in September too, traders said. Further, the domestic industry is also not sure about the commencement of the government's weekly wheat electronic auctions which is also supporting the prices. 

Prices of MAIZE were steady at 2,850-2,900 rupees per 100 kg in Davanagere in Karnataka, Shiva Kumar, a local trader, said. There were no fresh arrivals and local poultry farms used up their stocks, while others bought from Bihar and Madhya Pradesh, Kumar said. 

End

US$1 = 83.86 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Manisha Baxla

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