Informist, Thursday, Feb 8, 2024

By J. Navya Sruthi

MUMBAI – Prices of all key grains were steady across the country today for want of cues, market participants said. Prices of wheat were flat as traders are waiting to see the impact of the revised stock limit announced by the government. Prices of maize were flat in the key wholesale market of Davanagere, Karnataka, for lack of demand. Prices of rice were flat as traders are waiting to see if sales of Bharat Rice pick up.

In Davanagere, MAIZE prices were flat at 2,200-2,303 rupees per 100 kg, said Shiva Kumar, a local maize trader. Arrivals plunged by 2,400 bags to 600 bags (1 bag = 60 kg) from the previous day, Kumar said. "Current prices are not attractive for the farmers," he said, adding that farmers are waiting for prices to rise to sell their stock. "Farmers are incurring losses as 80% of the crop is damaged due to no rainfall in (the) state," Kumar said. Karnataka received 25% deficit rainfall during the southwest monsoon, according to the state's kharif acreage report.  

Moreover, poor demand from the ethanol industry is not helping traders, Kumar said. "Ethanol plants are paying us only 23 rupees as delivery costs while we incur transport expenses around 100 rupees (per 100 kg)," he said.

"The total bill would be 2,405 rupees (per 100 kg) for transporting 100 kg of maize to the plants, but the plants are ready to pay only 2,300 rupees and 23 rupees for delivery," Kumar said. We make a profit of only 1-2%, he added.

Prices of mill-quality WHEAT in Kota, Rajasthan, were steady against the previous day at 2,325-2,350 rupees per 100 kg, said Aniket Mehta, a local trader. Arrivals, too, were steady at 2,000 bags (1 bag = 60 kg), from the previous day, Mehta said.

The government today reduced the stock limit on wheat for wholesalers and traders to 500 tn from 1,000 tn to prevent hoarding and speculation, the Ministry of Consumer Affairs, Food and Public Distribution said in a release. However, the stock limit for retailers remains unchanged at 5 tn per outlet.

"This was unexpected from the government. Let's wait till tomorrow for the market's reaction to this news," Mehta said. The move comes at a time when the all-India average wholesale price of wheat has risen 8.2 rupees from a month ago to 2,771.51 rupees per 100 kg today, as per data from the department of consumer affairs.

Prices of Sona Masoori RICE were flat at 6,000 per 100 kg in Bhavanipuram, Vijayawada, Ravi Shankar, a local rice trader, said. "Till Bharat Rice hits the market, we do not see any change in the price," Shankar said. 

According to the consumer affairs department, the all-India average wholesale price of rice today was 3,867.97 rupees per 100 kg, up 515.65 rupees from 3,352.32 rupees a year ago and 24.9 rupees higher from a month ago.

End

Edited by Ashish Shirke

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