iGrain India - Wheat prices rise in Delhi- Mixed trend in other marketsWeekly Wheat Market Review (9-15 November 2024)Delhi Market:
- Price Movement: The price of wheat from UP/Rajasthan in Delhi saw a rise of ₹50, reaching ₹3170-3180 per quintal.
- Market Dynamics: Millers and processors, after the conclusion of government stock releases, are increasingly dependent on wholesale markets to meet their requirements. This has led to an upward trend in prices, as supply from government channels is now limited.
- Price Movement: Wheat prices rose by ₹50 in Rajkot, Gujarat.
- Market Dynamics: Despite a price increase in some areas, there’s a varied trend within the state. The demand for wheat seems relatively steady, maintaining upward pressure on prices.
- Price Movement: Prices in Indore, Madhya Pradesh, dropped by ₹100, falling to ₹2850-3300 per quintal due to weaker demand at higher price levels.
- Regional Trends: Prices softened by ₹20 in Dabra, while Khandwa saw a rise of ₹50, and Itarsi recorded an increase of ₹70.
- Price Movement:
- In Kota, wheat prices fell by ₹33.
- In Bundi, they dropped by ₹45.
- In Baran, prices rose by ₹25.
- Market Dynamics: Mixed trends across Rajasthan's mandis with slight price declines in some regions and increases in others, driven by regional demand variations.
- Price Movement: Wheat prices fell by ₹10 to ₹40 per quintal in various mandis, although a few mandis saw prices improving by ₹5-10.
- Market Dynamics: The trend reflects a more cautious buying sentiment in Uttar Pradesh, possibly due to the seasonal shift or higher stock availability.
- Government Stand: The central government maintains that there is a sufficient stock of wheat available in the country, with stable supplies being delivered to mandis. As a result, there is no immediate need for imports under the duty-free regime, nor is there a requirement to initiate sales from government stocks under the Open Market Sale Scheme (OMSS).
- Supply Outlook: Prices have remained relatively stable, as the government continues to manage wheat stock strategically without triggering additional supply from reserves.
- Sowing Progress: Wheat sowing for the Rabi season has commenced, although at a slower pace. As of now, the sowing area is expected to reach over 335 lakh hectares, with the government setting a production target of 1150 lakh tonnes.
- Seasonal Impact: As the harvest of Kharif crops accelerates, the pace of wheat sowing is expected to pick up. The government is carefully managing its available wheat stocks and is focused on optimizing sowing to meet future needs.