High production and large stocks are putting pressure on wheat prices

26-Feb-2026 12:16 PM

New Delhi. Like last year, the country is expected to see a high wheat production this year, while stock levels in the market and the central pool are high. This will ensure a comfortable supply and availability of this crucial food grain in the domestic market, reducing the likelihood of price spikes. New wheat will begin arriving in some states in the third or fourth week of next month, with harvesting beginning in almost all states in April.

Some trade analysts say that the wholesale market price of wheat may fall below the minimum support price (MSP) as the new crop begins to be harvested. The government has increased the MSP by ₹160 to ₹2585 per quintal. Wheat prices have been under pressure for a long time, driven by uncertainty in government policy.

Last year, traders purchased wheat at high prices, but by imposing storage limits, the government forced them to sell their stocks at lower prices. This time, the trading community may exercise extreme caution in wheat procurement.

Producer organizations are also concerned about a decline in wheat prices. Some enthusiastic analysts believe that wheat prices could fall by ₹300-400 per quintal below the MSP in April-May.

If this happens, farmers could launch a massive protest, forcing the government to purchase large quantities of wheat. If the government provides concrete assurances, traders/stockists may show significant interest in purchasing wheat from farmers.