Mumbai, March 13 (Commoditiescontrol):India's wheat reserves have reached a worrisome low, with inventories in government warehouses totaling just 9.7 million tons. This marks the lowest figure since 2017, attributed to two consecutive years of weaker harvests. This has led the government to sell record amounts of wheat to boost domestic supply and stabilize prices.
Despite the dwindling reserves, India's government has declined requests to encourage imports by easing the existing 40% tax or purchasing directly from major wheat exporters such as Russia.
Wheat prices in Delhi remained consistent at INR 2750 per quintal today, with reduced buying activity observed. Current supplies primarily consist of wheat with higher moisture content, leading many bulk buyers to adjust prices downward.
Regional price differences were evident across India:
Gujarat: New wheat traded at INR 2500-2510 per quintal, with loose mandi sales at INR 2350 per quintal.
Uttar Pradesh: Prices steady at INR 2640 per quintal.
Madhya Pradesh: New wheat mandi rates traded at INR 2350-60 per quintal.
Rajasthan: Wheat prices stable at INR 2510 per quintal.
Analysts suggest the government's reduced wheat reserves could incentivize aggressive procurement, which may prevent significant near-term price drops. Uncertainty surrounding stock limit regulations is keeping bulk buyers and stockists sidelined. While the current crop is healthy, future wheat prices will largely depend on whether the government extends stock limit declarations. Depending on this decision, prices could fluctuate by INR 50-100 per quintal in either direction.
(By Commoditiescontrol Bureau: +91 9820130172)
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