iGrain India - Weekly Review - Wheat (23-29 November)
Market Overview:
Wheat prices showed fluctuations during the week in response to changes in demand and supply in key wholesale markets across major wheat-producing states.
Delhi:
- In the national capital, Delhi, wheat prices from Uttar Pradesh and Rajasthan rose by Rs 35, reaching Rs 3050-3060 per quintal. This indicates a modest increase in prices in the region.
- Wheat prices in Rajkot, Gujarat, saw a sharp increase of Rs 300, reaching Rs 3000-3550 per quintal. Similarly, in Indore, Madhya Pradesh, the price rose by Rs 160, ranging between Rs 2700-3180 per quintal.
- In other regions, the wheat market remained relatively soft due to weak demand at high prices. In Dewas, Madhya Pradesh, wheat prices dropped by Rs 200, while in Harda, the price fell by Rs 100. Other markets experienced minor fluctuations of Rs 50. Wheat prices in Rajasthan were also subdued, with a decrease of Rs 90-95 per quintal in Uttar Pradesh mandis.
- Wheat arrivals remain limited in mandis across the country, causing challenges for millers and processors. To address this, the Central Government has instructed the Food Corporation of India (FCI) to auction 25 lakh tonnes of wheat under the Open Market Sale Scheme (OMSS) through weekly e-auctions until March 31, 2025. This initiative is expected to ease wheat supply, potentially leading to a reduction in open market prices, as the reserve price of government wheat is lower than current market prices.
- Despite attractive market prices, wheat sowing has not seen significant growth in area coverage. The delayed harvesting of Kharif crops is likely to push back wheat sowing in states like Punjab and Haryana, which are critical for wheat production.