A Persistent Rise in Wheat Prices

Wheat prices continue to climb, with current rates in Delhi and in Gujarat at USD 0,36 per kg. Over the past few weeks, prices have risen by USD 0,01 to 0,02 per kg. With experts predicting a further increase of USD 0,01 per kg in the coming days.

Government Delays Adding Pressure to the Market

Ajay Raitha, an experienced market analyst, pointed out that recent government missteps have delayed wheat allocations. It is likely pushing availability beyond November 15. As a result, market prices could see another jump. Although the government has released additional funds for ration distribution. The limited availability of wheat in the open market is expected to maintain upward pressure on prices.

Delayed Sowing and Wheat Seeds!

Monsoon crops are still in the fields, delaying wheat sowing by 10 to 15 days. While demand for wheat seeds is not yet high, experts predict an increase in demand as soon as the sowing begins. Russia's recent minimum export price of USD 0,25 per kg has created opportunities for Indian wheat exports, particularly in southern regions. However, with Russian wheat prices now rising to USD 0,27 per kg, imports are becoming less feasible.

Seed Demand Expected to Drive Prices Higher

Dinesh Dewani, another industry expert, observed that current wheat prices have fluctuated by USD 0,003 to 0,006 per kg, with no significant movement in recent days. However, as farmers gear up for sowing in Gujarat, demand for wheat seeds is expected to rise, potentially pushing prices up by USD 0,01 per kg. Currently, wheat in Saurashtra region of Gujarat is priced approx USD 0,36 kg. Along with it seed wheat from Rajasthan trading at similar range.

Decline in Lokvan Wheat’s Popularity

For the first time in five years, Lokvan wheat is seeing reduced demand. Farmers in Saurashtra have shifted away from Lokvan due to its vulnerability to weather conditions, with many opting for the more resilient Kidi wheat. Additionally, buyers in southern India have reduced their purchases of Lokvan wheat, anticipating potential government action to open imports if prices continue to rise.

Conclusion: Keep An Eye On Indian Government Policy

Given the steady rise in wheat prices and ongoing delays in government action, traders may find it advantageous to hold their stocks, expecting further price increases in the coming weeks. However, the possibility of government imports could limit any dramatic price spikes, so staying informed about policy changes is essential.





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