Last Week's Recap: Fluctuating Wheat Prices In Indian Markets

Wheat prices in various Indian markets experienced fluctuations during the past week. Wheat demand declined, resulting in price decreases in several regions. Let’s explore an overview of the price movements in different markets, the possibility of the Open Market Sale Scheme (OMSS) implementation, and wheat stock availability in the country.

Rate Decline

In Delhi, wheat price opened at Rs 2515 per quintal on Monday and closed at Rs 2455/60 per quintal on Saturday, indicating a decline of Rs 55 per quintal. Decreased demand contributed to this downward trend.

Region-wise Market Highlights

1.     Haryana

• Sirsa- The market witnessed a price decline from 2250 to 2220 rupees per quintal, representing a decrease of 30 rupees.
• Most markets in Haryana remained stable, some experienced weakness.

2.     Jharkhand

• Jamshedpur– The market-maintained stability throughout the week, with prices holding steady at 2550 rupees per quintal.
• No significant declines were observed in the Jharkhand markets.

3.     Uttar Pradesh

• Agra- Wheat prices opened at 2450 and closed the week at 2380 rupees per quintal, indicating a decline of 70 rupees.
• Gorakhpur- The region experienced weaker prices, declining by 20 rupees.
• Maximum mandis in Uttar Pradesh observed a decline, while markets with good momentum witnessed slightly weaker prices.

4.     Maharashtra

• Belgaum- The market maintained stability throughout the week, with prices remaining steady at 2700 rupees per quintal.

OMSS Implementation

The Open Market Sale Scheme (OMSS) allows the government to impose taxes on quarterly transactions. However, there is currently no official information available regarding the possibility of OMSS implementation starting July 2023 onwards. Traders are currently operating at different price levels, and stockists have become active in the market.

Wheat Stocks & Need For Imports

The FCI’s Central Pool holds approximately 313 lakh tons of wheat, indicating a sufficient stock available in the country. Considering the current market situation and stock availability, a downturn in the market’s foundation is unlikely, eliminating the need for wheat imports.

Uttar Pradesh’s Procurement

From 2011-2023, Uttar Pradesh witnessed the lowest procurement of wheat, with only 2.17 lakh tons being purchased by the government.

OFB’s Insight

Last week, India’s wheat market experienced price fluctuations due to decreased demand. While some regions witnessed declining prices, others remained stable or weak. The Open Market Sale Scheme’s implementation remains uncertain, and current market conditions suggest that there is no immediate need for wheat imports. Sufficient wheat stock availability in the country further supports this notion. Uttar Pradesh’s wheat procurement has been relatively low compared to other states in recent years.

Read more: Weekly Report: Soybean Prices Stable In Maharashtra’s Solapur

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