New Delhi, April 16 (Commoditiescontrol): Wheat markets across major centers in India continued to exhibit a rangebound pattern with a slight upward bias, underpinned by robust government procurement activities. While a marginal reduction in arrivals in key states like Madhya Pradesh (MP) and Rajasthan contributed to the positive sentiment, the absence of significant bulk stockists tempered the price gains.
The decline in wheat arrivals, particularly noticeable in the Kota mandi where today's influx stood at 1 lakh bags, down from the peak of 2.25 lakh bags witnessed earlier in April, signals a gradual tapering of supply. Similar trends have been observed in other major mandis across MP, further supporting the prevailing price levels.
Government procurement has been notably active, with total wheat procurement reaching 3.563 million tons by April 16th. This robust buying spree by the government suggests that any significant downturn in wheat prices is improbable in the near term.
Despite the buoyancy in government procurement, a subtle shift in farmer preferences has been observed, particularly in MP and Rajasthan, where some farmers are opting to sell their produce in mandis rather than to the government. This trend is attributed to farmers' desire to receive immediate cash without adjustments against loan accounts, even if the mandi prices hover slightly above the Minimum Support Price (MSP).
In regional markets, wheat prices remained relatively steady. In Delhi, prices traded within the range of INR 2425-2430 per quintal, while Rajasthan's new wheat maintained stability at INR 2520 per quintal with arrivals ranging between 25,000-27,000 metric tons. Gujarat saw new wheat trading at INR 2490-2500 per quintal, while Uttar Pradesh markets held steady at INR 2400-2410 per quintal, with loose mandi rates ranging between INR 2280-2300 per quintal.
In South India, particularly in Hyderabad and Bangalore, wheat prices demonstrated resilience, with new wheat lines trading at INR 2750 and INR 2840 per quintal respectively.
However, in Kolkata and Bihar zones, wheat prices have remained rangebound in recent weeks due to insufficient supplies to meet the prevailing demand. Harvesting progress in Bihar has been sluggish, maintaining pressure on arrivals, while stockists remain cautiously active amid policy uncertainties and concerns over moisture levels in the produce.
Despite some uptick in stockist activity in Bihar at INR 2400 per quintal, the prices are expected to remain relatively stable, with only marginal declines anticipated in the coming days as moisture levels decrease, potentially stimulating further stocking activity.
The freight from Bihar to Kolkata stands at approximately INR 160 per quintal, making it unlikely for stockists to achieve parity for mill delivery prices in Kolkata at INR 2550 per quintal, underscoring the current bottom levels in Kolkata's wheat market.
In conclusion, while government procurement continues to provide support to wheat prices, regional dynamics and evolving farmer preferences are expected to influence market trends in the foreseeable future.
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