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Informist, Thursday, Dec. 26, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat in Indore were up Thursday due to low arrivals and firm demand, traders said. They expect wheat prices to rise by INR 100 per 100 kg more within a month. Prices of rice and maize were unchanged from the previous day, traders said. 

Prices of mill-quality WHEAT were up by INR 30 per 100 kg from the previous day at INR 3,030-INR 3,170 per 100 kg in Indore in Madhya Pradesh due to low supply and firm demand from mills, a local trader, Gaurav Kochar, said. "Wheat market has the potential to further increase in prices by approximately INR 100 (per 100 kg) over the next 15 days. This projection is based on current market trends and factors," Kochar said in a note. 

Also, the fact that the arrival of the new wheat crop will start only at the end of February is also pushing prices higher, Kochar said. Wheat prices have seen a significant surge, with a rise of INR 140 in just the last month, he said.

However, prices of mill-quality wheat in Navi Mumbai's Vashi market were unchanged from the previous day at INR 3,300 per 100 kg, local wholesale dealer Devendra Vora said. Market participants expect wheat prices to stay elevated in the new year amid lower supply in the domestic market and increasing demand. 

A senior executive of a fast-moving consumer goods company told Informist that the government should announce wheat imports of 3-4 million tonnes in ports in south India. These imports would act not only as a buffer against anything going wrong with the rabi wheat crop but also stop millers in south and east India from buying aggressively once wheat arrivals start in domestic markets. 

Prices of MAIZE at Davanagere in 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. 

The demand from the ethanol sector is likely to increase in 2025, which is likely to keep prices high, said G. Chandrashekhar, commodity market expert and policy commentator. Trade experts also expect the government to announce imports under the tariff rate quota or to reduce the current import duty of 60%. Most of India's maize imports are from Myanmar and Ukraine. 

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. 

Rice prices have been steady for more than a month, Shankar said. "Currently, rice mills have started to infuse the new crop of rice in the market, weighing on prices," he said. However, the prospect of higher exports is likely to offset any fall in rice prices, Vora said.  End

Edited by Saji George Titus

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