Weekly Review-Wheat

25-Jan-2025 07:17 PM

Limited fluctuations in wheat prices according to demand and supply

The wheat market seems to be experiencing relatively stable conditions, with minor fluctuations in prices based on local demand and supply. The sowing of wheat has been completed, and the area sown has increased to 320 lakh hectares, which could lead to some early harvesting starting in March. Despite the limited arrival of wheat in wholesale markets, the prices have been steady, with slight upticks in certain regions. In Delhi, the price of wheat from UP and Rajasthan increased by Rs 30 to Rs 3260/3280 per quintal during the week, while prices in Madhya Pradesh saw a decline overall, with a few exceptions where prices went up, like in Khandwa and Itarsi. In Rajasthan, while markets in Baran and Bundi remained stable, wheat prices in Kota saw a rise of Rs 30, reaching Rs 2900/3080 per quintal. Similarly, in Uttar Pradesh, there was a slight increase in wheat prices, except in Mainpuri, where they softened by Rs 10. For the next few weeks, wheat prices are expected to fluctuate within a narrow range. The limited stock available with farmers and traders, combined with an increase in government wheat supply, is reducing reliance on market stocks. This balance could prevent any significant softening in prices until March-April, although weather disturbances could potentially push prices upward. Additionally, the minimum support price (MSP) for wheat has been set at Rs 2425 per quintal for the 2024-25 season, marking a Rs 150 increase from the previous season. The wholesale market prices are consistently above the MSP, indicating solid demand from millers and processors. Overall, wheat prices are expected to stay relatively stable for the next few weeks, with potential for slight upward movement if any weather-related issues arise.