Mixed Trend Prevails In Wheat Prices, Higher Procurement May Push Up Market

NEW DELHI (Commodities control) Wheat prices increased today in Kota mandis as demand rose from flour millers and stockists. But the prices slipped in Rajkot due to poor quality of last season’s wheat. However, wheat prices were expected due to rise higher procurement by the government and prospective buying from stockists and flour millers. Various mandis in producing states registered new as well as old states.

Mill quality wheat gained Rs. 25 to Rs. 1620-1650 per quintal in Kota mandi. Duplicate Sharbati wheat also increased on strong demand. But the prices slipped in Rajkot mandi for lower quality wheat. According to traders, there was good demand of last season’s wheat as it was preferable for consumption till May. But poor quality was key factor for price movement. If the quality of old wheat in particular mandi is good, demand will be better which is pushing up prices. But poor quality is discouraging buyers as it cannot be stored. As Rajkot mandi has noted arrival of poor quality old wheat so lower price range of mill quality wheat declined.

However, new wheat prices were steady in Rajkot mandi. New wheat was priced higher in Rajasthan mandis also. New wheat of Duplicate Sharbati (Tukdi or 4037) was traded today in kota as high as Rs. 2125-2175 per quintal. Kota mandi registered new arrival of 500 bags. There was no trade in Bundi mandi. New arrival was very limited at about 1500 bags in Rajasthan’s Hadouti region. While total arrival was about 6000 bags. New wheat arrival increased to 1.40 lakh bags in Madhya Pradesh mandis. But the prices remained steady.

Traders expect higher prices in near future because exporters are active for new wheat buying. Stockists and flour millers are also expected to come in the market. Additionally, the government has increased wheat procurement target to 427.36 lakh tons which is 9.56 percent higher than last season buying or 389.93 lakh tons. Higher wheat procurement may also support wheat prices.