The current situation in the wheat market indicates a potential rise in prices due to strong demand and limited supply. Flour millers and processors are facing challenges in sourcing wheat at the required quantities. Despite storage limits on wheat, its arrival in the market remains constrained.

Large producers and companies are hoarding significant wheat stocks, releasing them gradually, and the government is unwilling to release wheat from its own reserves, thus further restricting supply.

In major markets like Delhi, Indore, Rajkot, Kota, and Shahjahanpur, wheat prices have already surged, with the price of wheat from UP and Rajasthan reaching Rs 3170-3180 per quintal.

This is considerably higher than the minimum support price (MSP) set by the government for the 2023-24 season at Rs 2275 per quintal. The MSP for the 2024-25 marketing season has been raised to Rs 2425 per quintal to encourage farmers to increase sowing.

The wheat sowing season is still underway in key producing states like Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Rajasthan, and Gujarat.

Although sowing in Punjab typically ends by May 20, it continues into the current period. However, the ongoing sowing activity may not result in an immediate increase in available stock. Experts predict that without a substantial release of wheat under the Open Market Sale Scheme (OMSS),

the price will likely remain high until new wheat stocks start arriving in March or April next year. Thus, intermittent price rises are expected in the wheat market for the next two to three months.