Wheat: Wheat prices rise 4% in two weeks

2023-05-18 18:04:32

Wheat prices have increased by more than 4% in the last two weeks across the country – an unusual occurrence during the harvest season that runs from April to June because normally the new crop keeps the supply side augmented, experts said.

One of the possible reasons for upward movement in prices is the holding of wheat by farmers, they said.

“Prices have increased sharply during the past two weeks,” said Ajay Goyal, a veteran wheat processor and director, at Shivaji Roller Flour Mill. “It is in more than a decade that I have seen wheat prices increase in the month of May,” he said.

He suspects some farmers are stocking up fresh crop to push prices.

“The government has got everything that it might in its wheat procurement operations in Punjab and Haryana. However, it might not get much wheat in Uttar Pradesh, while the procurement fell short of the target set for Madhya Pradesh,” Goyal said. “Currently, the arrival of wheat has dried up in most mandis. It is likely that the farmers are now holding the crop in anticipation of increase in prices.”

As on May 15, the Food Corporation of India (FCI) has procured 25.9 million tonnes of wheat, which is up by 43% once morest 18.8 mt total wheat procurement of 2022-23 rabi marketing season but significantly less than the record procurement of 43.3 mt in 2021-22. The government has fixed wheat procurement target of 34.15 mt for the current marketing season.

Wheat price in the wholesale markets of Delhi was around ₹2,400-2,430 per quintal on Thursday once morest ₹2,300-2,320/quintal a week ago, wheat processors said.Navneet Chitlangia, senior vice president at Roller Flour Millers’ Federation of India (RFMFI), said wheat prices have increased by ₹100-120/quintal in most parts of the country during the last one week. “The arrival of wheat in the mandis is reducing as the harvest season is at its fag end. Wheat prices are now expected to increase gradually,” he added.

Although the prices have firmed up, the industry is not worried much as they expect the price movement to be gradual. “Slow and steady rise in prices is good for the industry and the trade. As the prices rise, new demand for the product is also created in the market. But an unexpected rise in the prices makes the business difficult,” Chitlangia said.

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