Wheat Prices Surge Amid Limited Supplies and Buyer Activity

New Delhi, November 5 (Commodity Control): Wheat prices rose significantly across major Indian markets today, with an increase of INR 40-60 per quintal as sellers remain reluctant to sell at current rates. The absence of government measures to control wheat prices has further supported this upward trend.

In Punjab, buyer interest has increased, with prices reaching INR 3,100 per quintal in Amritsar. The delayed sowing of wheat in Punjab and Haryana due to a lag in paddy harvesting has contributed to supply concerns. Meanwhile, Delhi millers actively stocked wheat, anticipating limited availability in the coming months.

South Indian millers also showed increased buying interest today, supported by the government’s indication that imports are unlikely soon. Price increases were recorded across major markets:
- Delhi: INR 32,000 per ton (up by INR 500)
- Uttar Pradesh: INR 29,600 per ton (up by INR 400)
- Uttarakhand: INR 29,800 per ton (up by INR 400)
- Bengaluru: INR 33,700 per ton (up by INR 600)
- Madhya Pradesh and Rajasthan: INR 29,600 per ton (up by INR 500)
- Gujarat: INR 30,000 per ton for general wheat; Lokvan variety reached INR 31,500 per ton
- Kolkata: INR 31,900 per ton (up by INR 100)

Bihar remained steady at INR 30,200 per ton, with major supplies directed toward Kolkata.

The government’s increased allocation of 3.5 million tons of Public Distribution System (PDS) wheat for states like Madhya Pradesh and Odisha is expected to help stabilize supply. However, PDS diversions could limit availability for the Open Market Sales Scheme (OMSS), which may raise wheat prices further in the coming months. The Food Corporation of India’s (FCI) wheat stocks were estimated at 23.78 million tons on October 1, above the buffer stock norms of 20.52 million tons, which has delayed the decision to release wheat through OMSS.

Global wheat prices from Ukraine origin remained steady at CIF USD 270 per ton, but if domestic prices in India’s southern regions rise further, imports may become viable despite the current 44% import duty.

The Indian government’s Bharat brand retail program entered its second phase, with mobile vans offering subsidized Bharat Atta at Rs 30 per kg and Bharat Rice at Rs 34 per kg. Minister Pralhad Joshi emphasized the initiative’s role in stabilizing food costs, while 3.69 lakh tonnes of wheat and 2.91 lakh metric tonnes of rice have been allocated for retail distribution. However, participation among millers has been limited, resulting in a lower-than-expected supply of Bharat Atta.

With current weak supply and strong demand, wheat prices are expected to rise by another INR 50-100 per quintal in the near term.

(By Commoditiescontrol Bureau; +91 98201 3018)