Wheat prices are expected to rise in India due to a bonus in Rajasthan, with the price difference between states like Rajasthan, Uttar Pradesh, and Madhya Pradesh becoming significant.

In Rajasthan, wheat costs more due to a Rs 125 per quintal bonus. Starting from the Minimum Support Price (MSP) of Rs 2425 per quintal, the total cost per quintal is Rs 2550, including the bonus.

Adding taxes (6.8% or Rs 175) and transportation costs (Rs 40), the price reaches Rs 2765 per quintal. After accounting for storage (Rs 7 per month), bank loan interest (Rs 23 per month), and the stockist's margin (2% or Rs 57), the total price of wheat comes to Rs 3055 per quintal, when transported to Delhi.

In comparison, Uttar Pradesh's wheat price starts at Rs 2425 per quintal without the bonus. After taxes, warehouse expenses, and stockist margins, the total cost to Delhi is Rs 2840 per quintal.

Madhya Pradesh's situation mirrors that of Uttar Pradesh, making the wheat supply from these states relatively cheaper.

As a result, demand for wheat is expected to be stronger in states like Uttar Pradesh and Bihar, where prices are lower, while Rajasthan's higher wheat prices might reduce its competitiveness in the trade.