Informist, Wednesday, Oct 18, 2023
By Yukta Mudgal
MUMBAI – Prices of mill-quality wheat and maize rose today in the key wholesale markets of Rajasthan and Bihar, respectively, on the back of increased buying.
“The demand for wheat is quite high. But there’s an actual shortage of wheat here, simply because of low production,” said Aniket Mehta, a local trader in Kota, Rajasthan.
According to reports, wheat production in the country in 2022-23 is likely to be at least 10% lower compared to the government’s third advance estimate, which was released on May 25. In its third advance estimate, the government had pegged the country’s wheat production at 112.7 mln tn, against 107.7 mln tn in 2021-22.
In 2021-22, wheat production took a major hit due to heatwaves. The market remains concerned that production in India may remain low for the second consecutive year. Typically, India’s wheat consumption is around 108 mln tn per year.
WHEAT prices in Kota were up 25 rupees at 2,475 rupees per 100 kg. However, arrivals remained steady at 8,000 bags (1 bag = 60 kgs) from the previous day, said Mehta.
In Indore, Madhya Pradesh, wheat prices were up 25 rupees at 2,550 rupees per 100 kg, and the arrivals increased by 300 bags to 2,000 bags from Monday, said Lavish Shah, a local trader.
Today, the government approved a 7% hike, or an increase of 150 rupees per 100 kg, in the minimum support prices of rabi wheat for the upcoming marketing season in April. The minimum support price for wheat, which is a major rabi crop, now stands at 2,275 rupees per 100 kg.
In the key wholesale market of Purnea, Bihar, MAIZE prices rose by 20 rupees from the previous day to 2,040-2,090 rupees per 100 kg. However, arrivals remained steady at 15,000 bags (1 bag = 60 kgs), said Kanhaiya Rastogi, a local trader.
Poultry farmers are buying more maize for their birds, which has contributed to a pick-up in demand for the crop, said Rastogi.
Maize is majorly sown in the kharif season (May-June) in India. However, in Bihar and its neighbourhood regions, maize is sown in rabi season (October-November) as well.
Traders have been selling maize below the minimum support price of 2,090 rupees per 100 kg set by the government of India for the 2023-2024 kharif marketing season. However, now, due to a surge in demand, prices have risen, giving them some relief.
The following table details grain prices in major markets, along with the change:
End
Edited by Tanima Banerjee
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