OfBusiness Grains Dailies

8^th May’23

Price

• Prices of wheat in Bengaluru and Erode have declined. Wheat is currently trading at Rs. 2570/Qtl in Bengaluru and Rs. 2650/Qtl in Erode.
• The prices of maize have increased in Gulabbagh, selling at Rs.1800/Qtl, and in Chhindwara, where it is now being sold at Rs.1900/Qtl.

Demand and Supply

• Supply chains in UP/Bihar have been affected by unseasonal rains and storms, resulting in a delay of 1-2 days in the by-road supply of several commodities.
• Wheat procurement in Punjab is gradually increasing, and the quality of newer yields is better than the ones observed in March-April.
• MP and UP are expected to produce a new yield of Bajra by June, and there is high demand from stockists awaiting this.

News

• The government will procure damaged crops of paddy, maize, and turmeric in Bapatla, Andhra Pradesh.
• Despite the deadline for delivering custom-milled rice (CMR) to the Food Corporation of India (FCI) passing, 9% or 3.65 MT of stock is still held by millers in Punjab. Officials have urged procurement agencies to speed up delivery, or further actions will be taken, according to Mukul Kumar, Director of the Food Supplies & Consumer Affairs Department.
• To maintain control over prices before the next General Election, the Union Government has extended the ban on wheat exports until July next year and imposed a stock limit to prevent hoarding, according to a senior official.

OFB’s Opinion

• Wheat procurement is improving, but due to unstable weather conditions, there could be further delays. Stockists are advised to be careful about quality while storing.
• Maize crop has been beneficial, and there is a positive sentiment around it, with strong market demand and distribution. Stockists are recommended to increase their stocks.