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Informist, Thursday, Dec. 12, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat in Indore, Madhya Pradesh, rose Thursday due to firm demand and a supply shortage, traders said. Prices of maize and rice were unchanged from the previous day, traders said.  

Prices of mill-quality WHEAT rose by INR 20 in Indore to INR 2,895-3,020 per 100 kg due to strong demand and a supply shortage due to lower arrivals, local trader Gaurav Kochar said. However, in Navi Mumbai's Vashi, prices of the same quality wheat were steady at INR 3,300 per 100 kg, said wholesale dealer Devendra Vora.

Traders said the government's move to reduce stock limits did not pull down prices. "The government has to understand there is a real shortage of wheat in market and not artifical scarcity," Vora said. While the government had pegged wheat output in 2023-24 (Jul-Jun) at a record of 113.3 million tonnes, private trade had estimated wheat production last year at only 100-104 million tonnes. 

Vora said the government has to import wheat to reduce soaring prices in domestic markets. He sees prices rising by INR 200-300 from current levels till the arrival of the next crop, which will only be after March. 

On Wednesday, the government further reduced the quantity of wheat trade entities can stock to prevent hoarding and moderate prices, which will be applicable till Mar. 31. The government reduced the stock limits for traders/wholesalers to 1,000 tonnes from 2,000 tonnes and for processors to 50% of the monthly installed capacity multiplied by the remaining months in the current financial year ending March. Earlier, the limit for processors was 60% of the monthly installed capacity multiplied by the remaining months of the year.

In the case of retailers, the stock limit has been reduced to 5 tonnes per outlet from 10 tonnes. 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.

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

Maize prices are currently below the minimum support price of INR 2,225 per 100 kg, as arrivals have more than 16% moisture content, Kumar said. However, arrivals with moisture content of 14% or lower are being sold at INR 2,350, which is higher than the MSP, he 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.  End

Edited by Avishek Dutta

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