New Delhi, January 13 (Commodities Control): Wheat prices have remained steady to firm across major markets due to significant spot demand, driven by high festive consumption. The uptick in demand has led to a rise in prices, and market participants are closely monitoring government interventions to manage supply.
In a bid to address the increasing demand, the government has raised its wheat allocation for the weekly auction from 1 lakh tons on January 8 to 1.5 lakh tons on January 15, marking a 50% increase. However, many market observers feel that this amount is still insufficient. They suggest that unless the government raises the weekly allocation to 3-4 lakh tons, wheat prices are likely to remain firm in the near term.
Statewise Allocation Increases:
The government has substantially increased wheat allocations across several states:
- Andhra Pradesh saw its allocation rise by 33.3%, from 750 MT to 1,000 MT.
- Assam received a 38.4% increase, with allocations growing from 6,500 MT to 9,000 MT.
- Bihar's allocation rose by 53.8%, from 6,500 MT to 10,000 MT.
- Delhi saw a massive increase of 100% in its allocation, from 14,000 MT to 24,000 MT, the largest absolute rise across all states.
- West Bengal's allocation grew by 23%, from 6,500 MT to 8,000 MT.
- Odisha's allocation rose by 30%, from 2,000 MT to 2,600 MT.
Market Performance:
Wheat markets in key regions have experienced price increases:
- Delhi saw a rise of INR 55 per quintal, trading at INR 3,330 per quintal.
- Uttar Pradesh traded up by INR 20 per quintal, reaching INR 3,160 per quintal.
- Madhya Pradesh saw an increase of INR 10 per quintal, with prices at INR 3,140 per quintal.
- Gujarat and Rajasthan both traded up by INR 20 per quintal, at INR 3,160 per quintal.
- Bihar wheat remained steady at INR 3,120 per quintal, while Kolkata wheat held steady at INR 3,290 per quintal.
- South India saw a rise of INR 25 per quintal, with prices at INR 3,425 per quintal.
Stock and Sowing Update:
As of January 1, the opening stocks of wheat stood at 18.4 million tons. After accounting for 4.5 million tons allocated for the Public Distribution System (PDS), 9.5 million tons for buffer stocks, and 0.6 million tons for Open Market Sale Scheme (OMSS), the government holds 3.8 million tons for the next two and a half months, which is expected to be sufficient to prevent significant price fluctuations.
Sowing of wheat has reached 31.9 million hectares and is nearly complete in all major wheat-producing states, except for certain regions of Uttar Pradesh and Bihar. The current crop conditions are favorable.
The government has set a procurement target of 30 million tons for the 2025-26 wheat season. Given the weak physical stock position and potential increases in government allocations, if the government maintains or raises the allocation for the upcoming January 22 auction, wheat prices could see further upward pressure. Market participants remain cautious, awaiting further updates on supply-side measures and government actions.

(By Commoditiescontrol Bureau; +91 98201 3018)