The Wheat market in Delhi commenced the week at Rs. 2540 per quintal on 4 September 2023 and ended the week at Rs. 2535 per quintal on 9 September 2023. Although prices remained relatively stable, there was a minor decrease of Rs. 5 per quintal last week.
Let’s embark on a journey to understand the intricate web of events that unfolded in the Wheat market during week 2 of September 2023, shedding light on the reasons behind these price fluctuations and offering a glimpse into what the future might hold.
Let’s have a look at the latest market updates:
The future trajectory of Wheat prices hinges significantly on the demand for Wheat Flour. As demand surges in the market, we can anticipate prices gaining strength and heading upward.
The government is actively monitoring Wheat prices to control inflation. Their commitment is clear and efforts are being made to prevent a significant increase in Wheat prices. The Mandi prices remained stable, but retail prices continued to rise. Officials suggest that the MSP for the upcoming season should be increased by more than 8% compared to the previous year to encourage farmers to sell sufficient quantities of grains to increase stocks.
The next Wheat tender is scheduled for 13 September 2023, and current market conditions indicate continued strength in the Wheat market. The future direction of Wheat prices hinges on the demand for Wheat Flour. As soon as market demand picks up, prices are expected to strengthen.
Wheat prices stability during the last week in Delhi, with only a minor dip attributed to a lack of demand, highlights the resilience of the Wheat market. The reduction in Wheat supply played a role in maintaining this stability, indicating the market’s sensitivity to factors like arrivals and demand. Increasing the MSP to encourage farmers to sell their grains and boost stocks is a step in the right direction, ensuring food security and price stability.