Despite Various Government Efforts, Wheat Market Lacks Expected Momentum
05-May-2026 04:40 PM
New Delhi. In major wheat-producing states, robust procurement of wheat for the Central Pool continues at the Minimum Support Price (MSP) of ₹2,585 per quintal, and the government has also opened the doors for its export by the private sector. Despite this, wheat prices across various wholesale markets remain hovering around or even below the MSP. Furthermore, in states such as Madhya Pradesh, Rajasthan, and Uttar Pradesh, the pace of procurement is observed to be sluggish.
The government had initially authorized the export of 2.5 million tonnes of wheat and 0.5 million tonnes of wheat products—a quota that was subsequently doubled. Exporters are now permitted to ship 5 million tonnes of wheat and 1 million tonnes of value-added wheat products (such as flour, *maida*, *suji*, etc.). All these measures are being undertaken with the objective of boosting market prices for wheat.
However, the trade and industry sector remains largely skeptical regarding the efficacy of these measures, having faced significant disruptions due to the government's abrupt market interventions and its constantly shifting policies. If the trade and industry sector procures wheat from farmers at higher prices (a practice the government encourages), it naturally follows that the resale of such wheat would also occur at elevated rates.
Yet, the government often takes exception to this, promptly imposing stock limits via immediate orders. Similarly, while approval for the export of 5 million tonnes of wheat has been granted today, a sudden ban on such exports could be imposed tomorrow. Such unpredictability leaves exporters' business ventures stranded in limbo. A similar situation had unfolded in 2022.
The government must provide traders, exporters, millers, and processors with assurances regarding a concrete, stable, and pragmatic policy framework, thereby enabling these key market players to conduct their business operations with confidence and certainty.