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Informist, Wednesday, Dec. 11, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat, rice, and maize were steady Wednesday due to lack of new cues, traders said. Market participants expect wheat prices to fall slightly as the government has further tightened stock holding limits.

Prices of mill-quality WHEAT were steady at INR 2,875-3,000 per 100 kg in Indore, Madhya Pradesh, local trader Gaurav Kochar said. In Navi Mumbai's Vashi market, prices of the same quality wheat were steady at INR 3,300 per 100 kg, said wholesale dealer Devendra Vora. Prices were also steady in Kota, Rajasthan, at INR 2,800 per 100 kg, local trader Aniket Mehta said.

At a time when traders were expecting wheat prices to rise more, the Centre Wednesday further reduced the wheat quantity that trade entities can stock to prevent hoarding in order to calm down prices. The revised stock limits are applicable till Mar. 31. This is likely to weigh on wheat prices, traders said. 

According to the revised stock holding norms, a trader or wholesaler cannot stock more than 1,000 tonnes of wheat. Before this, they could hold 2,000 tonnes and 3,000 tonnes, respectively, as announced in September and June.

In the case of retailers, the stock limit has been reduced to 5 tonnes per outlet from 10 tonnes earlier. Big chain retailers can hold only 5 tonnes in each outlet. In depots, they can stock 5 tonnes multiplied by the total number of outlets, according to the release. Previously, big chain retailers could stock 10 tonnes per outlet.

The stock limit for processors has been reduced to 50% from 60% of the monthly installed capacity multiplied by the remaining months in the current financial year ending March, the release said.

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

Prices of MAIZE in Davanagere, Karnataka, were steady at INR 2,000-2,350 per 100 kg from the previous day, said local trader Shiva Kumar. Arrivals were also steady at 3,000 bags (1 bag = 60 kg), the trader said.  End

Edited by Ashish Shirke

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