Wheat Prices Trade Steady to Weak Amid Import Duty Reduction Speculations

New Delhi, June 03 (CommoditiesControl): Wheat prices traded steady to weak across major centers today, influenced by reports suggesting the possibility of the Indian government reducing import duties to facilitate wheat imports from Russia and Ukraine. This speculation has exerted downward pressure on prices.

Media reports indicate that India is likely to allow wheat imports at zero customs duty soon after the new government takes charge, with shipments possibly beginning in September. The government is considering measures to ensure efficient port operations and minimize forex outgo, including auctioning import permits to the lowest bidders and setting a price cap for imports.

Additionally, the government may require vessels importing wheat to return with other commodities to optimize shipping logistics, and imports will need to meet phyto-sanitary conditions, necessitating adequate facilities at ports.

In Delhi, prices decreased by INR 10 per quintal, bringing the new price to INR 2580 per quintal. Similarly, new wheat prices in Rajasthan dropped by INR 10 per quintal, now at INR 2590 per quintal. In Bengaluru, prices fell by INR 20 per quintal, trading at INR 2840 per quintal (net). Madhya Pradesh saw prices decrease by INR 10 per quintal, now at INR 2590 per quintal ex-warehouse. Uttar Pradesh experienced a price drop of INR 20 per quintal, bringing the price to INR 2500 per quintal. In Uttarakhand, prices fell by INR 20 per quintal, now at INR 2510 per quintal. Gujarat's prices decreased by INR 20 per quintal, now at INR 2590 per quintal, and Kolkata saw prices drop by INR 10 per quintal, now at INR 2710 per quintal.

While the official government notification is still awaited, some major Indian buyers are already sourcing wheat from exporting countries, indicating a strong likelihood of impending wheat imports. If the government formally announces the import policy, wheat prices across major centers could decline by INR 50-100 per quintal.

Despite the current speculation-driven weakness in prices, the absence of an official notification might lead to a price recovery in the coming days. However, the actual implementation of import policies could result in further price adjustments.