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Informist, Monday, Oct. 21, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat in Mumbai's Vashi market were up Monday due to firm demand ahead of Diwali and low supply, traders said. Prices of rice and maize were steady in key markets across the country, traders said. 

Prices of WHEAT in Mumbai's Vashi market rose INR 50 to INR 3,150 per 100 kilograms due to firm demand from flour mills ahead of Diwali, Devendra Vora, a wholesale broker, said. Also, there is not enough supply as the government is unlikely to sell wheat in the open market this year, he said. 

The government is unlikely to conduct weekly wheat auctions this year due to dwindling stocks in the Centre's pool, as the procurement during the rabi marketing season, which ended in June this year, was lower than the target. The Centre managed to procure only 26.60 million tonnes of wheat from farmers, against the target of 30-32 million tonnes, but marginally above last year's 26.20 million tonnes. 

As of Oct. 1, wheat stocks with the Food Corp. of India were at 23.8 million tonnes, down 5.4% on month and 1% on year. However, wheat stocks were slightly above the buffer norms for the quarter. According to buffer norms, the minimum wheat stocks for Oct-Dec should be 20.52 million tonnes – operational stocks of 17.52 million tonnes and strategic reserve of 3 million tonnes. The government sets the buffer requirement of food grains for every quarter, and the FCI has to maintain the mandated level.

Meanwhile, the government on Saturday set a record-high production target of 115 million tonnes for wheat during the rabi season, which usually starts in October. However, this year the sowing for the rabi season is yet to start as the harvesting of kharif crops is yet to be done, traders said. Continuous rainfall has delayed the harvest of kharif crops and the sowing of rabi crops. 

Vora said the country is likely to meet the wheat production target due to above-normal monsoon rainfall, which has filled reservoirs in key wheat-growing states. Staggered rainfall during the Southwest monsoon will not just help kharif crops but rabi crops too, as above-normal rains increase moisture content in the soil. 

Prices of RICE were steady in the Vashi market at INR 6,000-6,200 per 100 kg, Vora said. Basmati rice prices were also steady at INR 7,300-7,800 per 100 kg, he said. Prices of Sona Masoori rice, a non-basmati premium variety, were steady at INR 6,400 per 100 kg in Vijayawada's Bhavanipuram in Andhra Pradesh, Ravi Shankar, a local trader, said. 

Prices of MAIZE were steady in Karnataka's Davanagere. Demand was weak due to higher moisture content that offset a fall in arrivals. Prices of maize were unchanged at INR 1,600-2,200 per 100 kg, while arrivals rose to 2,000 bags (1 bag = 60 kg) from 1,000 bags on the previous day, but lower than a week ago's arrivals of 10,000 bags, Shiva Kumar, a local trader, said. 

Arrivals fell due to continuous rain in the region, Kumar said. According to Kumar, there is 10-15% damage to the maize crop, but there is nothing to panic. "Continuous rains have delayed the harvest of the standing maize, which has now led to fungus on the crop," Kumar said. However, the production is estimated to be double last year's output, so 10-15% damage is not a problem, he said. 

However, if arrivals do not increase by next week, Kumar expects prices to rise, but the upside is restricted due to the high moisture content in the grain. Grain with a moisture content of 18-20% is being sold at INR 2,200 per 100 kg, and that with a moisture content range of 25-35% is being sold at INR 1,600 per 100 kg, Kumar said.  End

Edited by Saji George Titus

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