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Informist, Thursday, Sep 5, 2024

By Taniva Singha Roy

MUMBAI – Wheat and rice prices were steady across key markets of the country today amid lack of any new cues, traders said. Wheat arrivals were also steady in Rajasthan's Kota mandi today, 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), Aniket Mehta, a local trader, said. Prices in Mumbai's Vashi mandi were also steady at 2,950 rupees per 100 kg, said Devendra Vora, a wholesale broker. 

Market participants said most wheat stocks have been sold by 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, traders said. Traders had said earlier this week that wheat prices may rise by 100 rupees per 100 kg this month if there is no news about the government's weekly electronic auctions. They added that arrivals of the grain at mandis have fallen compared to last season. Arrivals during this time are usually around 25,000 bags (1 bag = 50 kg) in Kota, but currently arrivals are barely 10,000 bags, traders said. 

Prices of basmati RICE were also steady at 7,000-7,300 rupees per 100 kg in Vashi, Vora said. India exported 3.62 mln tn of basmati rice in Jan-Jul, a record high for the period, surpassing the previous record of 3.29 mln tn set in the first seven months of 2020, according to data analysed by Informist. Exports of the aromatic rice in Jan-Jul rose 21.7% on year because of higher demand from Iraq, Yemen, the United Arab Emirates, and the US. In the corresponding period last year, India exported 2.97 mln tn of basmati rice.

The area under rice, one of the most important kharif crops, rose 4% on year to 40.9 mln ha as of Monday. Progress in the sowing of paddy and the current rice stocks with the Centre have led the government to allow grain-deficient states to buy rice from the Food Corp of India through open market sales, without participating in electronic auctions.

Given the surplus availability of rice with FCI, the Centre has allowed ethanol distilleries to participate in its weekly rice auctions. The distilleries can buy a maximum of 2.3 mln tn of rice from the auctions. 

Rice stocks with the Centre as of Aug 1 were the highest since 2005 at 32.8 mln tn. Rice stocks have risen nearly 35% on year and are far above the Jul-Sep buffer norm of 13.5 mln tn--operational stock of 11.5 mln tn and strategic reserve of 2 mln tn. Apart from rice, FCI has 19.00 mln tn of unmilled paddy. 

Prices of MAIZE were steady in Karnataka's Davanagere, local traders said. Prices of maize in Davanagere were at 2,900-3,000 rupees per 100 kg. There were no arrivals today, as farmers have exhausted their stocks.

End

Edited by Tanima Banerjee

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