New Delhi, November 6 (CommoditiesControl): Wheat prices in India are experiencing upward momentum as active post-Diwali buying and limited domestic supplies support the market. Despite early concerns, no firm government measures to curb prices have emerged, further encouraging price gains. Traders report that only around 20% of stockists still have wheat stocks, and those remaining are reluctant to sell, banking on future price increases.
Most stockists holding wheat are strong and optimistic about further price hikes. According to a major stockist, prices could increase by ₹200-250 per quintal if the government refrains from intervening; however, a government intervention could lead to a possible decline of ₹100-150 per quintal.
In addition, wheat sowing has been delayed by about two weeks in key regions of Punjab and Haryana due to a delayed paddy harvest and shortages of inputs like seeds and fertilizers. Around 60-70% of farmers have not yet cleared their paddy fields, which could impact wheat supplies in the coming months.
Regional Market Prices and Trends
Prices have generally risen across major markets:
- Delhi: Prices steady at ₹31,800-32,000 per ton.
- Uttar Pradesh: Stable at ₹29,600 per ton.
- Uttarakhand: Holding steady at ₹29,800 per ton.
- Bengaluru: Up by ₹300 per ton to ₹34,000 per ton.
- Madhya Pradesh: Up by ₹100 per ton to ₹29,700 per ton.
- Gujarat: Increased by ₹200 per ton to ₹30,200 per ton.
- Kolkata: Increased by ₹100 per ton to ₹32,000 per ton.
- Bihar: Steady at ₹30,200 per ton, with most supplies directed towards Kolkata.
The government recently launched Phase II of the Bharat Brand Retail Program to provide subsidized essentials, including wheat flour (atta) and rice, to consumers. Under this program, Bharat Atta is priced at a maximum retail price (MRP) of ₹30 per kg, and Bharat Rice at ₹34 per kg. Union Minister Pralhad Joshi highlighted that this initiative aims to make staple foods affordable amid rising market prices. In this phase, 3.69 lakh tonnes of wheat and 2.91 lakh tonnes of rice have been allocated for distribution, following the successful Phase I distribution.
However, limited participation by millers in the Bharat Atta program has resulted in an undersupply of subsidized atta, which could sustain market prices. On the government front, there has been no indication of reducing import duties, and with an estimated 8-9 million tons of wheat in the hands of processors, the government has dismissed the need for imports.
Given the current supply constraints and strong demand, wheat prices are anticipated to rise by ₹50-100 per quintal in the short term. Import prices from Ukraine are steady at CIF USD 270 per ton, but imports are unlikely unless domestic prices rise by another ₹200-300 per quintal, which could make importation viable even with a 44% duty.
(By Commoditiescontrol Bureau; +91 98201 3018)
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