TryGOLD- Free

GRAINY PICTURE
Business Standard|January 29, 2025
Several questions arise from the recent trend of wheat prices
- SANJEEB MUKHERJEE

A few weeks back, wheat prices in Delhi's markets soared to ₹3,360 a quintal. The jump came despite the Centre pumping in large quantities of wheat through the open market sale scheme (OMSS) of the Food Corporation of India. The government recently said it was keeping a close watch on wheat prices while world markets were seen to be under pressure due to an oversupply.

In 2023-24 (FY24), the government pumped in 10 million tonnes of wheat from its inventories to cool prices. However, in November last year, only around 2.5 million tonnes was allocated for open sales, of which 900,000 tonnes have already been pumped into the market and 860,000 tonnes have been lifted at auctions, so far showing only a limited impact on prices. Trade sources say that since the first tender for open sales issued in November to the last one issued a few days back, wheat prices in the open markets have risen by ₹150 a quintal in the Delhi market.

"The prices, instead of coming down, have risen," said a large trader based in Delhi. The primary reason for the rise is that the market is hungry for wheat and there are low pipeline stocks with flour millers and biscuit-makers. "There is a lot of speculative activity, too, going on in the wheat markets, keeping prices high," he said.

Talk of speculative activity has gained ground because official estimates put wheat production in the 2023-24 crop, which ended in July, at an all-time high of 113.29 million tonnes, up 2.47 per cent from the previous year. Wheat stocks in state warehouses totalled 18.41 million tonnes at the start of this month - it was 16.35 million tonnes in January last year.

The Centre fixed a reserve price for wheat under OMSS at ₹2,325 a quintal for 'fair and average quality grain' and 2,300 per quintal for 'under reduced specifications grain'. However, traders say the prices fetched at the auctions are much higher than the reserve price, reflecting unsatiated demand.

This story is from the January 29, 2025 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the January 29, 2025 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESS STANDARDView All
Excessive financialisation can hurt economy
Business Standard

Excessive financialisation can hurt economy

The Economic Survey of 2024-25, tabled in Parliament on Friday, has identified financialisation as a risk and said such a phenomenon has resulted in unprecedented levels of public- and private-sector debt in developed economies.

time-read
2 mins  |
February 01, 2025
Balance climate action with fossil fuel investments
Business Standard

Balance climate action with fossil fuel investments

India's climate goals: More adaptation, less Chinese dependence

time-read
2 mins  |
February 01, 2025
External debt remains stable amid global uncertainties
Business Standard

External debt remains stable amid global uncertainties

The Economic Survey noted that India's external debt has remained stable over the past few years.

time-read
1 min  |
February 01, 2025
Trump Repeats Tariffs Threat to Dissuade BRICS From Replacing $
Business Standard

Trump Repeats Tariffs Threat to Dissuade BRICS From Replacing $

President Donald Trump on Thursday warned off BRICS member countries from replacing the US dollar as a reserve currency by repeating a 100 per cent tariffs threat he had made weeks after winning the November presidential elections.

time-read
1 min  |
February 01, 2025
Fed, Powell on defensive as diversity effort comes under fire
Business Standard

Fed, Powell on defensive as diversity effort comes under fire

Donald Trump's offensive against diversity, equity and inclusion programs is putting the US central bank in an uncomfortable squeeze.

time-read
2 mins  |
February 01, 2025
Apple's forecast cheers investors after mixed Q1
Business Standard

Apple's forecast cheers investors after mixed Q1

Revenue from China slips 11% as local competition rises

time-read
1 min  |
February 01, 2025
Sun Pharma Q3 net up 15% at ₹2,903 cr
Business Standard

Sun Pharma Q3 net up 15% at ₹2,903 cr

Rise due to domestic, emerging mkts

time-read
2 mins  |
February 01, 2025
Incentivise public transport, not private electric vehicles
Business Standard

Incentivise public transport, not private electric vehicles

Incentivising public transportation rather than private electric vehicle (EV) production is a more viable path for energy transition and reduced carbon emissions in India, as the latter is dependent on high amounts of imports from countries like China, the Economic Survey said on Friday.

time-read
1 min  |
February 01, 2025
Survey outlines reforms agenda for 'Viksit Bharat'
Business Standard

Survey outlines reforms agenda for 'Viksit Bharat'

Butterfly and Dragon becomes the talking points in the Economic Survey 2024-25. For many readers, the curiosity would be more on what the Survey says about growth and inflation outlook for FY26.

time-read
3 mins  |
February 01, 2025
Business Standard

Sebi raises concerns over greenwashing by India Inc

Securities and Exchange Board of India's (Sebi's) whole-time member (WTM) Amarjeet Singh on Friday voiced concern over greenwashing and misleading disclosures related to environment, social, and governance (ESG) metrics.

time-read
1 min  |
February 01, 2025

We use cookies to provide and improve our services. By using our site, you consent to cookies. Learn more