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Informist, Friday, Dec. 20, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat rose Friday in Kota, Rajasthan, due to higher demand and a shortage of supply, traders said. Prices of maize and rice remained unchanged from the previous day due to lack of fresh cues, traders said. 

Prices of mill-quality WHEAT were up by INR 10 at INR 2,860 per 100 kg in Kota due to lower supply and firm demand, local trader Aniket Mehta said. Arrivals were steady from the previous day at 6,000 bags (1 bag = 50 kg), Mehta said.

However, prices of the same quality wheat were steady from the previous day at INR 2,935-INR 3,060 per 100 kg in Indore in Madhya Pradesh, local trader Gaurav Kochar said. Prices of wheat in Navi Mumbai's Vashi market were also steady at INR 3,300 per 100 kg, local wholesale dealer Devendra Vora said.

Traders expect prices to continue in an uptrend next week amid lower supply in the domestic market and increasing demand. They said Food Corp. of India should increase the amount of wheat sold at weekly auctions, which is the only way to control prices. Some trade experts and market participants said importing 3-4 million tonnes of wheat would cool down the soaring prices. 

At Wednesday's weekly auction, the government sold nearly 99,000 tonnes of wheat at an average price of INR 2,904 per 100 kg, which is slightly lower than INR 2,920 per 100 kg at the previous auction. FCI's average selling price on Wednesday fell slightly as millers did not bid aggressively, according to trade sources.

The corporation typically begins wheat auctions in July or August, but in 2024-25, FCI began weekly auctions only in December. For 2024-25 (Apr-Mar), the government allocated only 2.5 million tonnes of wheat to the FCI to sell in the open market through weekly e-auctions. However, the market wants FCI to sell 4.5-5.0 million tonnes. Last year, FCI sold a record 9.4 million tonnes of wheat under the open market scheme.   

Prices of MAIZE in Davanagere, Karnataka, were steady from the previous day at INR 2,000-INR 2,380 per 100 kg, said local trader Shiva Kumar. Arrivals were also steady at 5,000 bags (1 bag = 60 kg), the trader said. 

Kumar expects prices to fall next week due to low demand as stockists and consumers have filled their stocks. He said that the moisture content in the grain remains at 16-18%, which is also weighing on prices.   

Prices of sona masoori RICE were steady at INR 5,500-INR 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-INR 6,400 per 100 kg, wholesale dealer Vora said. Prices of sonam rice from Gujarat were also steady at INR 5,600-INR 5,700 per 100 kg, Vora said.  End

Edited by Avishek Dutta

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