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Informist, Tuesday, Nov. 26, 2024

By J. Navya Sruthi

MUMBAI - Wheat prices in key markets in the country continued to fall due to prospects of a better crop and expectation of government's open market sales in December, traders said. Prices of maize rose in Karnataka's Davanagere due to firm demand. Rice prices were steady with a slight downward bias, they said. 

Prices of mill-quality WHEAT fell for the second consecutive day in Rajasthan's Kota market to INR 2,750 per 100 kg from INR 2,775-2,800 the previous day, Aniket Mehta, a local trader said. Arrivals were steady from the previous day at 5,000 bags (1 bag = 50 kg), he said. 

Wheat sowing in Rajasthan is progressing well and there is a shift from crops like mustard to wheat, due to good rainfall during the southwest monsoon, Mehta said. "Usually, when there is good availability of water and better moisture content in the soil, farmers shift to wheat from mustard," he said. 

However, in Navi Mumbai's Vashi market, prices of the mill-quality variety of wheat were unchanged from the previous day at INR 3,300, said Devendra Vora, a wholesale dealer. Traders also said that there is panic in the market about the government's wheat sales under the open market scheme.

On Friday, IGrain India reported, quoting unnamed sources, that the government was likely to start wheat sales under the open market sales scheme in the first or second week of December. 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. The government's weekly e-auctions of rice and wheat are meant to cool down retail prices across the country. 

Usually, the government starts wheat sales in July or August, but this year, owing to lower procurement and falling stocks, it delayed open market sales. As of Nov. 1, wheat stocks with the Food Corp. of India were at 22.3 million tonnes, nearly 2% higher from a year ago but down 6.4% from a month ago, according to data from the nodal food procurement agency. The on-year rise was the first in 11 months.

Prices of MAIZE in Karnataka's Davanagere rose to INR 2,000-2,350 per 100 kg from INR 1,800-2,300 per 100 kg on the previous day, Shiva Kumar, a local trader said. Prices rose due to firm demand from stockists and the price for godown delivery of the grain was at INR 2,420 per 100 kg, he said. 

Meanwhile, moisture content in maize has also fallen from 18-20% last week to 16-18%, which supported prices, Kumar said. Arrivals remained steady from the previous day at 10,000 bags (1 bag = 60 kg), he said.

Prices of new basmati RICE were steady in Mumbai's Vashi market at INR 6,000-6,400 per 100 kg, Vora said. Prices of sonam rice from Gujarat were also steady at INR 5,600-5,700 per 100 kg, Vora said. Prices of rice were steady at INR 5,500-6,400 per 100 kg in Bhavanipuram in Andhra Pradesh, said Ravi Shankar, a local trader.

Vishal, a basmati paddy trader from Malerkotla, Punjab, said that basmati rice prices are under pressure currently due to higher carryover stocks and better production during this year's kharif season. Traders expect a slight downside in basmati rice prices.  End

Edited by Vandana Hingorani

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