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Informist, Thursday, Jan. 2, 2025

By J. Navya Sruthi

MUMBAI – Prices of wheat rose Thursday for the third day this week due to supply concerns, traders said, adding that the upside can be restricted only when arrivals of the new crop start at the end of February in Gujarat. Meanwhile, prices of maize and rice were steady, but maize traders see prices falling in the next week. 

Prices of mill-quality WHEAT rose by INR 20 per 100 kg to INR 3,080-INR 3,220 per 100 kg at Indore in Madhya Pradesh, local trader Gaurav Kochar said. Similarly, prices of the same quality wheat rose to INR 2,950-INR 2,975 per 100 kg from INR 2,875-INR 2,900 per 100 kg in Rajasthan's Kota, local trader Aniket Mehta said, adding that arrivals fell to 2,000 bags from 5,000 bags (1 bag = 50 kg), a week ago. However, prices of the same quality wheat were steady at INR 3,350 per 100 kg in Navi Mumbai's Vashi mandi, said Devendra Vora, a local wholesale dealer.   

Market participants and experts said the supply of wheat is very low in domestic markets and all the pipelines are 'dry' which is leading to a continuous rise in wheat prices. A few market sources suggest that the government should increase the amount of wheat allocated under the open market sales scheme to control prices, while others believe the government should import at least 5 million tonnes of wheat before the new crop arrivals start. 

In November, the government allocated 2.5 million tonnes of wheat to the Food Corp. of India to offload in the open market under the open market sales scheme for the financial year 2024-25 (Apr-Mar) through e-auction to private parties. This year, the government has set the reserve price of fair and average quality wheat at 2,325 rupees per 100 kg, and the price of wheat under reduced specifications at 2,300 rupees per 100 kg. 

Typically, FCI starts wheat auctions in July or August. However, this year the government delayed open market sales of wheat owing to reduced procurement in Apr-Jun and the resultant lower stocks at the Centre's pool.

Prices of MAIZE at Davanagere in Karnataka were steady at INR 2,000-INR 2,380 per 100 kg and arrivals were also steady at 2,000 bags (1 bag = 60 kg), local trader Shiva Kumar said. Prices are likely to fall more than INR 100 per 100 kg if the rains stop in Tamil Nadu and the weather gets warmer, Kumar said.

Usually, demand for maize in Karnataka falls when arrivals of the grain start in Tamil Nadu. However, this time, the ongoing rainfall in Tamil Nadu led to higher moisture in the grain available and aided demand for Karnataka maize, Kumar explained. Cloudy weather makes maize drying process difficult, pulling down prices of the commodity due to the high moisture content in the grain. 

Prices of Sona Masoori RICE were steady at INR 5,500-INR 6,400 per 100 kg at Bhavanipuram in Andhra Pradesh, said Ravi Shankar, a local trader. 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 Deepshikha Bhardwaj

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