Informist, Monday, Jan 30, 2023

By Tanya Rana

NEW DELHI – Prices of mill quality wheat in the spot markets of Rajasthan and Madhya Pradesh  extended losses from the previous session after the government decided to offload 3 mln tn of the grain under the open market sale scheme, market participants said.

* Prices of mill-quality WHEAT dropped in Indore today after the government's decision last week to offload wheat from the central pool, said N.K. Agarwal, a local trader. Arrivals were pegged flat at 1,000 bags (1 kg = 50 kg), he added.

* From Wednesday, Food Corp of India will start floating an e-auction tender for open market sales of wheat on a weekly basis, said Chairman Ashok K.K. Meena at a press conference on Friday. Every Wednesday, each state will get a fixed quantity of wheat under the open market sales scheme. 

* FCI will offer a total of 2.5 mln tn of wheat to flour millers and bulk buyers, among others, across states until the fresh crop hits the market from Mar 15, Meena said.

* Wheat prices fell in Kota too, even though arrivals were at 3,000 bags, down 1,000 bags from Saturday, said Aniket Mehta, a local trader.

* The sharp moderation in wheat prices is likely to pull down the headline CPI inflation print in February, as the crop's share in the cereals and products index of the CPI is nearly 30%. The cereals and products index carries a weight of 9.67 in the Consumer Price Index.

* "Assuming retail wheat prices reduce by 4 rupees per kg, a 12.3% month-on-month decline, in February, headline inflation will reduce by 0.34 percentage points," said Gaura Sen Gupta, India economist, IDFC FIRST Bank.

* Price of MAIZE in Purnea, Bihar, fell due to sluggish demand from bulk buyers amid increase in arrivals, said Kanhaiya Rastogi, a local dealer. Arrivals declined to 4,000 bags (1 bag = 60 kg) compared with 3,750 bags on the previous trading day. 

* The fresh maize crop will hit markets in Bihar in the first week of April, traders said

* However, prices of maize remained flat in Davanagere, Karnataka. Arrivals were pegged at 2,000 bags compared with 500 bags the previous trading day, said Shiva Kumar, a local trader.

* The area under maize across the country is at around 2.1 mln ha, 19.2% higher than a year ago, data from the agriculture ministry showed.

* Prices of BASMATI 1121 RICE rose due to demand from millers and bulk buyers, said Raman, a local dealer.

End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

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Informist, Monday, Jan 30, 2023

By Tanya Rana

NEW DELHI – Prices of mill quality wheat in the spot markets of Rajasthan and Madhya Pradesh  extended losses from the previous session after the government decided to offload 3 mln tn of the grain under the open market sale scheme, market participants said.

* Prices of mill-quality WHEAT dropped in Indore today after the government's decision last week to offload wheat from the central pool, said N.K. Agarwal, a local trader. Arrivals were pegged flat at 1,000 bags (1 kg = 50 kg), he added.

* From Wednesday, Food Corp of India will start floating an e-auction tender for open market sales of wheat on a weekly basis, said Chairman Ashok K.K. Meena at a press conference on Friday. Every Wednesday, each state will get a fixed quantity of wheat under the open market sales scheme. 

* FCI will offer a total of 2.5 mln tn of wheat to flour millers and bulk buyers, among others, across states until the fresh crop hits the market from Mar 15, Meena said.

* Wheat prices fell in Kota too, even though arrivals were at 3,000 bags, down 1,000 bags from Saturday, said Aniket Mehta, a local trader.

* The sharp moderation in wheat prices is likely to pull down the headline CPI inflation print in February, as the crop's share in the cereals and products index of the CPI is nearly 30%. The cereals and products index carries a weight of 9.67 in the Consumer Price Index.

* "Assuming retail wheat prices reduce by 4 rupees per kg, a 12.3% month-on-month decline, in February, headline inflation will reduce by 0.34 percentage points," said Gaura Sen Gupta, India economist, IDFC FIRST Bank.

* Price of MAIZE in Purnea, Bihar, fell due to sluggish demand from bulk buyers amid increase in arrivals, said Kanhaiya Rastogi, a local dealer. Arrivals declined to 4,000 bags (1 bag = 60 kg) compared with 3,750 bags on the previous trading day. 

* The fresh maize crop will hit markets in Bihar in the first week of April, traders said

* However, prices of maize remained flat in Davanagere, Karnataka. Arrivals were pegged at 2,000 bags compared with 500 bags the previous trading day, said Shiva Kumar, a local trader.

* The area under maize across the country is at around 2.1 mln ha, 19.2% higher than a year ago, data from the agriculture ministry showed.

* Prices of BASMATI 1121 RICE rose due to demand from millers and bulk buyers, said Raman, a local dealer.

End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2023. All rights reserved.