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Informist, Monday, Sep 23, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat in key wholesale markets across the country rose slightly today due to firm demand ahead of the festival season, as well as lower supply in the country, traders said. Prices of maize and rice were unchanged from the previous day, traders said. Traders expect maize prices in Karnataka to fall by 200 rupees per 100 kg in the next few days ahead of bumper arrivals. 

Prices of mill-quality WHEAT rose 10 rupees to 2,650-2,675 rupees per 100 kg today in Rajasthan's Kota despite a 10,000-bag surge in arrivals at 25,000 bags (1 bag = 50 kg), Aniket Mehta, a local wheat trader, said. Prices of the same quality wheat also rose in Mumbai's Vashi mandi to 2,975-3,000 rupees per 100 kg from 2,950 rupees per 100 kg the previous day of trade, said Devendra Vora, a wholesale broker. 

Prices rose as the government's wheat sales have not started yet, because of which there is a supply-demand gap in the country, Vora said. He added that private traders were not holding stocks and the stock with market participants was "running stock". Though the government's third advance estimates show wheat output in the 2023-24 rabi season at 112.9 mln tn, the industry expects the crop to be around 105-110 mln tn. 

On Wednesday, Food Secretary Sanjeev Chopra said that to check wheat prices, the government had approved an additional allocation of 3.5 mln tn of wheat under the Pradhan Mantri Garib Kalyan Anna Yojana till March 2025. There was also news that the government is unlikely to conduct weekly open market sales for wheat this season, which is the main reason for the rise in prices, traders said. 

"The government wants wheat prices to rise, so that more farmers will sow the crop next year. The government will also increase wheat MSP (minimum support price) next month, which will also support prices," Vora said. 

MAIZE prices were steady in Davanagere at 2,000-2,500 rupees per 100 kg, despite a surge in arrivals from 300 bags to 4,000 bags (1 bag = 60 kg), Shiva Kumar, a local trader, said. Prices are steady as more supply and high moisture content in the grain were offset by firm demand, traders said. Kumar expects prices to fall to 2,000-2,200 rupees per 100 kg in two-three days, as arrivals are expected to increase. Currently, the new crop has a moisture content higher than 30%, against the acceptable limit of 14%, he said. 

Prices of basmati RICE were also steady today in Vashi mandi at 7,300-7,400 rupees per 100 kg, Vora said. The government is likely to resume exports of non-basmati rice as stocks with the government are at a 20-year-high. Deliberations are underway, and a decision will be taken after the paddy crop situation is clear, Devesh Chaturvedi, secretary in the Department of Agriculture & Farmers Welfare, said on the sidelines of a media briefing on Thursday.  End

Edited by Avishek Dutta

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