Mumbai, December 12 (Commodities Control): Wheat prices have been rising across major centers in recent weeks, driven by a tight domestic supply scenario. However, today's trading remained steady across most markets.
In Delhi, prices held steady at ₹3,100–3,110 per quintal, while in Uttar Pradesh, prices remained neutral at ₹3,000 per quintal. Madhya Pradesh and Gujarat both traded steady at ₹2,980 and ₹2,990 per quintal, respectively. Rajasthan and Bihar recorded similar stability at ₹2,990 per quintal, while Kolkata prices stood firm at ₹3,250 per quintal. Southern markets, however, saw a slight increase, trading up by ₹10 to ₹3,350 per quintal.
Market Sentiment and Govt Interventions
Sentiment in the market is somewhat sluggish following the government's decision to reduce stock limits on wheat. Despite this, buyers have largely maintained prices as their stock levels remain below the revised limits.
The Food Corporation of India (FCI) conducted its second weekly e-auction under the Open Market Sales Scheme (OMSS), offering 1 lakh tonnes of wheat. For the second consecutive week, nearly 100% of the offered quantity was taken up, reflecting robust demand even at higher price levels.
In the December 11 auction, 99,815 tonnes of wheat were awarded to 1,480 processors across 23 states/regions. Among these, 19 states reported 100% offtake, while the northeastern region showed improvement with an 85% offtake, up from 60% the previous week.
Pricing Trends and Regional Disparities
Trade sources highlight price disparities across regions. Some mills in Karnataka managed to procure FCI wheat from Ludhiana at prices below ₹2,700–2,650 per quintal, while the open market price for similar quality wheat in Uttar Pradesh is around ₹3,400 per quintal, including delivery costs to Karnataka.
Outlook
Wheat prices are expected to trade within a range in the near term. If the government continues to release 1 lakh tonnes weekly through OMSS, prices are likely to hold steady with a positive bias, supported by strong demand.
However, if the government increases the auctioned quantity, wheat prices could face downward pressure. This aligns with government objectives to bring mandi prices closer to or below the Minimum Support Price (MSP) for smoother procurement in the upcoming season.
While the market remains firm due to limited supply and active demand, future price trends will hinge on government policy actions and adjustments in auction quantities under OMSS.
(By Commoditiescontrol Bureau; +91 98201 3018)
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