Wheat Prices Remain Steady to Firm Amid Strong Demand and Limited Govt Stock

New Delhi, September 27 (CommoditiesControl): Wheat prices have shown a steady to firm trend across major markets today, driven by strong demand and sellers' reluctance to sell at lower rates. The government's decision not to consider an Open Market Sale Scheme (OMSS) has further bolstered market sentiments.

In Delhi and the North India region, robust buying activity was noted as purchasers prepared for festive demand. However, suppliers are cautious and reluctant to part with their stocks at current market prices. The government recently increased its Public Distribution System (PDS) allocation by 3.5 million tons, raising the total to 21.7 million tons. Previously, the government had about 5 million tons available for OMSS, but this has now dwindled to just 1.5 million tons, a figure that falls short of current market needs. This scarcity could push wheat prices higher in the upcoming months.

Delhi's prices rose by INR 200 per ton to reach INR 29,600, while Uttar Pradesh also saw an increase of INR 200 per ton, settling at INR 28,200. In Uttarakhand, prices went up by INR 300 per ton to INR 28,400. The South Market remained steady at INR 31,600 per ton. Madhya Pradesh and Rajasthan recorded a rise of INR 200 per ton, reaching INR 28,400, and Gujarat prices firmed by INR 100 per ton, also at INR 28,400. Kolkata prices remained steady at INR 30,100 per ton.

In the southern markets, there has been an uptick in buying activity among millers, driven by expectations of increased demand for festive items. The ongoing uncertainty surrounding OMSS has intensified market sentiments. Analysts suggest that wheat prices may rise by INR 50-100 per quintal in the near future.

Millers are facing a weakened stock position due to their reliance on OMSS, which now appears unlikely to be implemented soon. As a result, wheat prices are poised for a significant increase, with market participants closely monitoring developments in government policy and demand trends.

(By Commoditiescontrol Bureau; +91 9820130172)