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Informist, Wednesday, Sep 4, 2024

By J. Navya Sruthi

MUMBAI – Wheat, rice, and maize prices were steady today in key markets across the country as there were no new cues, traders said. Wheat arrivals were also steady in Rajasthan's Kota mandi today, traders said.

Market participants said most wheat has been sold by the farmers and not much grain is left in the domestic market. Although the government has pegged a record wheat production for 2023-24 at 112.9 mln tn in its third advance estimates, most private agencies expect the output to be around 105 mln tn. Lower production and uncertainty about the government's weekly electronic sales is likely to push wheat prices higher by 100 rupees per 100 kg in September, traders said.  

Prices of mill-quality WHEAT in Kota were steady at 2,600-2,625 rupees per 100 kg and arrivals were also steady at 10,000 bags (1 bag = 50 kg), local trader Aniket Mehta said. Prices in Mumbai's Vashi mandi were also steady at 2,950 rupees per 100 kg, said Devendra Vora, a wholesale broker. 

Prices of MAIZE were steady in Madhya Pradesh's Chhindwara and Karnataka's Davanagere, local traders said. Prices of maize in Davanagere were at 2,850-2,900 rupees per 100 kg and those in Chhindwara were at 2,500-2,640 rupees per 100 kg.

Traders expect higher maize production from the current crop, as there has been no damage to the crop so far. Traders from Karnataka said most of the maize crop was healthy, and they expect a higher output this year. This is likely to weigh on prices due to more supply, and they expect at least a 200-rupee correction from the current maize prices. 

Maize prices surged last year due to low supply for top producing states like Karnataka and higher demand from the ethanol sector to meet the blending targets set by the government. In December, the government had restricted sugar diversion for ethanol production at only 2 mln tn, which led to more demand for maize. Recently, the government said sugar mills can freely divert sucrose from all sugarcane-based feedstocks for ethanol production in the upcoming ethanol supply year starting in November. 

Ethanol is made from starch-containing feedstocks like molasses and grains. Sugarcane juice, B-heavy molasses, and C-heavy molasses are sugarcane by-products obtained during sugar extraction. Sugarcane juice has the most sugar content, followed by B-heavy and C-heavy molasses. To reduce dependence on crude oil, largely imported, the government has set a target of achieving 15% blending of ethanol with petrol in 2023-24, and 20% in 2025-26. 

Prices of basmati RICE were also steady at 7,000-7,300 rupees per 100 kg in Vashi, Vora said.

End

Edited by Vidhi Verma

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