Informist, Monday, Nov 6, 2023
By Yukta Mudgal
MUMBAI – Prices of mill quality wheat fell today in the benchmark markets of Madhya Pradesh and Rajasthan as the government started selling the staple through online auctions, said traders. Prices of maize remained steady in the key market of Karnataka.
Last week, the government increased the total maximum quantity of WHEAT auctioned under the open market sales scheme to 300,000 tn per auction from 200,000 tn earlier to increase domestic supply and stabilise prices.
“Prices fell because the government sold wheat at e-auctions,” said Aniket Mehta, a trader in Kota, Rajasthan.
Wheat prices in the key market of Kota fell by 50 rupees to 2,450-2,475 rupees per 100 kg from the previous day. Arrivals of the staple grain rose 5,000 bags to 10,000 bags (1 bag = 60 kg), Mehta said.
Prices of mill quality wheat also fell in the benchmark market of Indore, Madhya Pradesh, by 75 rupees to 2,675 rupees per 100 kg from the previous day, said Jitendra Panwar, a local trader. Arrivals in Indore were up 1,000 bags to 5,000 bags (1 bag = 60 kg), he said.
On Thursday, Food Corp of India sold 287,000 tn of wheat to 2,389 bidders in open markets across India in its 19th e-auction. The corporation will continue to sell wheat in the open market till Mar 31. However, traders are kept out of the ambit of these e-auctions to avoid hoarding.
Additionally, Union Consumer Affairs, Food and Public Distribution Minister Piyush Goyal today launched the sale of subsidised wheat under the brand ‘Bharat Atta’ at a rate of 27.50 rupees per kg and allotted 250,000 tn wheat under the brand.
The sale of ‘Bharat Atta’ will help keep inflation in check, Goyal said at the launch.
However, some traders believe prices of wheat may not fall as sharply as anticipated. “I don’t think the government’s interventions will lower inflation because the government does not have enough stocks to cool prices,” Panwar, the Indore-based trader, said. “I am anticipating a fall of only 50–100 rupees in the coming days.”
MAIZE prices remained steady at 2,000-2,350 rupees per 100 kg in the key market of Davanagere in Karnataka, local trader Shiv Kumar said. However, arrivals doubled to 10,000 bags.
End
Edited by Rajeev Pai
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