The price of wheat is seeing an upward trend once again after a brief dip in November. This rise is attributed to limited sales from government stocks, slow wheat arrivals in the market, and factors like reduced government intervention.

The price in Delhi has now reached around Rs 3300 per quintal. Experts believe this price hike could persist for a while due to the government's limited stock of wheat, leaving it with fewer options to influence market prices.

Additionally, farmers in states such as Rajasthan and Madhya Pradesh are receiving an extra bonus of Rs 125 per quintal on top of the minimum support price (MSP), further driving up wheat prices.

When accounting for added costs like market fees, storage, transportation, and bank loan interest, the total cost of wheat is expected to rise significantly.

While wheat sowing has largely been completed and there is an increase in the area planted compared to last year, concerns about potential weather impacts over the next few months still exist.

The government has set a target for record wheat production in 2024-25, but there's skepticism in the industry regarding the accuracy of official production figures.

Despite a ban on wheat exports since May 2022, and some increase in government procurement, very little wheat is being sold at the government's support price, keeping market prices higher.