Wheat prices in Delhi reach Rs 3100 per quintal on strong demand

28-Oct-2024 02:58 PM

New Delhi. Wheat prices from Uttar Pradesh/Rajasthan rose by Rs 15 to Rs 3100 per quintal in early trade in Delhi today on strong demand from flour millers/processors and traders.

This price level is beneficial for traders/stockists and they should try to take advantage through profit booking sales.

There are many reasons for the rise in wheat prices. Firstly, the government has ruled out the possibility of selling wheat from its stock under the Open Market Sale Scheme (OMSS) for the time being, due to which millers/processors have to depend on open markets to meet their needs even though there is limited supply of wheat and secondly, the demand for the festive season has also reached its peak.

During the festive season, the demand and price of wheat products like flour as well as maida and semolina increases rapidly.

The stock of wheat in the central pool has come down to the lowest level in the last several years. The government has increased the price of Bharat Brand flour from Rs 275 to Rs 300 per 10 kg and has also clarified that there is no proposal under consideration to reduce or abolish the customs duty on import of wheat from abroad.

The sowing season of wheat, the most important food grain of the Rabi season, has officially begun and the demand for its seed is increasing. This is giving strength to the rise in prices.

The season of Lagnasara and auspicious festivals is going to start soon. The rise in prices clearly indicates that there is limited supply of wheat in the markets.

Stock limits are applicable on wheat and the government claims that traders have declared a stock of about 90 lakh tonnes of wheat on the government portal. The government does not see any crisis in the supply and availability of wheat, while the reality is different.