Wheat: Impact on prices due to start of new arrivals

With daily arrival of 5000~6000 bags, the price of new wheat in Pipariya Mandi decreased by Rs 50~100 to Rs 2275~2300/quintal in the last one week. Since last one week, the price of wheat in Delhi market has decreased by Rs 50-75 to Rs 2500/quintal. Last week, demand also remained weak due to most of the markets being closed. The arrival of new wheat has started in the markets of Pipariya, Jabalpur, Balaghat and Damoh, the major wheat producing areas of Madhya Pradesh, since last one week. Due to good prices last year and loss in gram, this year farmers took more interest in sowing wheat. This year, sowing area increased by 5~7% in Pipariya, 10% in Balaghat, 12% in Jabalpur and 10% in Damoh. This year there was an outbreak of disease on the wheat crop due to which the grains became small and white. In Madhya Pradesh, the government is purchasing wheat with MSP of Rs 2275/quintal and bonus of Rs 125. But these days farmers are selling wheat in the markets in the hope of increasing prices. There are reports of flattening of crops due to the storm in various areas of Punjab and Haryana today, which may also lead to possible loss of produce. The Government of India has mandated weekly reporting of wheat stocks by traders, millers and importers to combat hoarding and ensure price stability in the market. According to traders, there is a possibility of a fall in prices due to increase in arrivals in the coming days.

Insert title here