New Wheat Arrival Reduced In MP As Farmers Wait For Government’s Procuremnt

NEW DELHI (Commodities control) Mixed price trend prevailed in spot wheat trade in producing states of northern India. New wheat arrival reduced in Indore and other ajoining mandis as farmers preferred to sell their crop to government on MSP of Rs. 1975 per quintal. But the prices remained stable in Indore mandis. But old wheat gained in Rajasthan mandis. The prices declined in Kanpur mandis and steadied in other markets.

According to traders, farmers were unwilling to sell their wheat crop at current prices which are about Rs. 300 per quintal cheaper than MSP. They preferred to hold their crop so they can sell it to the government. The government yet to begin procurement in Madhya Pradesh, while arrival began about two week ago. Wheat arrival reduced to from 50,000 bags to 35000 bags in across the region of MP. A trader from Indore mandi Navneet Joshi said that local arrival halved to 1500 bags in Indore as farmers wanted to wait for government’s procurement. Some areas of Bhopal division are also receiving new wheat which was estimated to around 12,000 bags out of total 35000 bags in the states. New wheat was sold at Rs. 1700-2100 per quintal as per quality and variety. Lok-1 wheat was priced not lower that 1800 per quintal. However, old wheat was traded stable in Bhopal mandis.

Old wheat gained in Rajasthan mandis where local and regional demand was better. The prices gained in mandis of Hadouti region because of better demand from adjoining areas of MP. Recently, Mandi tax increased from 0.50 percent to 1.70 percent in MP so tax disparity reduced with Rajasthan. Earlier, the demand was diverted to MP mandis due to higher Mandi tax (2.6 percent) in Rajasthan.

Mill quality wheat slipped Rs. 10 to Rs. 1670-1680 per quintal in Kanpur mandis due to weaker demand. But the price remained steady in Delhi and Bareilly. Market sentiments were bearish in across the region ahead of peak arrival in further months.