According to recent data from the Ministry of Agriculture and Farmers Welfare, the average market price of wheat in the country on January 11, 2025, was ₹2909.96 per quintal, which is approximately 21% higher than the MSP (Minimum Support Price) for wheat. Wheat prices have increased by ₹100 per quintal compared to the previous week. Compared to the same period last year, wheat prices have risen by about 15%. Increase in Wheat Sowing Due to MSP Hike During the Rabi season of 2024-25, farmers have sown a record amount of wheat, primarily due to the ₹150 per quintal increase in the MSP announced in November 2024. This increase has raised farmers expectations of good returns on their wheat crops, prompting them to expand the area under wheat cultivation. Reasons for the Rising Wheat Prices The primary reason for the continuous rise in wheat prices is the shortage of wheat during the off-season. Farmers are hesitant to sell their wheat stocks before sowing the next crop, which has led to a decrease in wheat supply in the market. On the other hand, companies that produce biscuits, bread, and other food items are purchasing large quantities of wheat. Additionally, delays in wheat supply from the government are contributing to the widening gap between demand and supply in the market. We believe that wheat prices may continue to rise in the coming weeks. However, they also suggest that farmers and traders take advantage of the current price surge by selling small quantities of wheat to lock in profits.