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JAIPUR (Commoditiescontrol) - Superior quality wheat prices are likely to firm up in the month of June, due to lower output and restricted availability. Prices are expected gain Rs 150 per quintal as there will be scarcity of good quality wheat.
According to second advance estimate of union ministry of agriculture, wheat production will be 957.6 lakh tonnes during current Rabi season. But the traders expect production to be 20 per cent lower. Wheat crop was damaged in large portion because of untimely rain and hailstorm in March and April. Besides quality, the natural calamity has also affected crop yield.
Meanwhile, Food Corporation of India (FCI) is procuring wheat at a minimum support price (MSP). Government agencies have procured little over 19 lakh tonnes till now. During same period last year government procured 20.52 lakh tonnes. private company ITC is purchasing wheat in Rajasthan. The company is purchasing wheat at Rs 1,550-1,560 per quintal in Kota. However, the purchase was done at Rs 1,450-1,570 per quintal according to the quality. Other private and multinational companies are also purchasing wheat at near rates.
Mr Uttam Jethwani, a trader from Bundi (Rajasthan) told that ratio of rain affected wheat in total arrival is higher. There is little supply of good quality wheat. Roller flour mills are not keen to buy right now. They will come to market in the last week of current month. Wheat was traded at Rs 1,460-1,480 per quintal in Lawrence Road market of Delhi while it was sold at Rs 1,300-1,330 per quintal in loose in Kota market. Mr Jethwani informed that good quality wheat price may increase by Rs 100-150 per quintal after May. Currently, demand from southern and eastern country is strong. Stockists are also buying.
Trends in global market will also support domestic price. Wheat price is ruling between $ 235-267 per tonne in global market. Supply will rise in May-June when new crop arrives in Russia and Ukraine. Wheat prices may fall $ 15-20 per tonne in global market due to higher supply pressure.
Wholesale trader from Indore Mr Rahul Vohra said, "Wheat export is not feasible currently from India due to higher domestic price." Central government has fixed MSP at Rs 1,450 per quintal. Wheat cost will add up to Rs 1,700 per quintal at Kandla port after considering transport and other expense. As such price is higher than global market rate.
(By Commoditiescontrol Bureau; +91-22-61391533)
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