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Informist, Monday, Dec. 23, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat in Indore in Madhya Pradesh rose slightly Monday due to firm demand and a shortage in supply, traders said. Prices of rice and maize were steady due to a lack of fresh cues, traders said. 

Prices of mill-quality WHEAT were up by INR 20 to INR 2,955-INR 3,080 per 100 kg in Indore due to firm demand and low stock availability in domestic markets, Gaurav Kochar, a local trader said. Traders said the Food Corp. of India should increase the amount of wheat sold at weekly auctions from 100,000 tonnes to at least 150,000 tonnes, which is the only way to control prices. Some trade experts and market participants also suggested importing 3-4 million tonnes of wheat to cool down the soaring prices. 

However, prices of mill-quality wheat in Navi Mumbai's Vashi market were steady at INR 3,300 per 100 kg, local wholesale dealer Devendra Vora said. Traders expect prices to move up next week amid lower supply in the domestic market and increasing demand. 

The government's wheat stocks with FCI were at 20.6 million tonnes as of Dec. 1, up 7.3% from a year ago, according to data from the nodal food procurement agency. This is the first consecutive year-on-year rise in wheat stocks in 12 months. In November, wheat stocks rose 2% on year to 22.3 million tonnes. 

Though wheat stocks as of Dec. 1 were lower sequentially, it is well above the buffer norm of 13.8 million tonnes--operational stock of 10.8 million tonnes and the strategic reserve of 3 million tonnes. The government sets the buffer requirement for food grains, and the FCI has to maintain the mandated level.

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 in two to three days 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, 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 Saji George Titus

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