Wheat Prices Stay Steady as Supply Surpasses Demand

Wheat prices remained stable with a negative trend at major centers as the current supply is sufficient to meet the existing demand. Wheat sowing has increased by 17% compared to last year, reaching 18.73 million hectares, which is putting additional pressure on prices. In southern markets, prices remained stable at ₹2,980 per quintal. In Uttar Pradesh, prices fell by ₹10 per quintal to ₹2,630, while in Bihar, prices dropped by ₹10 to ₹2,640 per quintal. In Delhi, prices stayed steady at ₹2,780 per quintal. In Madhya Pradesh, prices remained at ₹2,640 per quintal, with the state government setting the Minimum Support Price (MSP) for the 2025-26 crop at ₹2,600 per quintal. The arrival of wheat in the mandis has remained steady, with prices largely stable or slightly lower compared to the previous week. Local mills are primarily using stored wheat and have reduced purchases from the open market this trend is expected to continue until March. Demand for wheat and wheat products remains low, with manufacturers operating at a capacity utilization of around 45-50%. Many processors are relying on their own stock or wheat supplied through government tenders. Market prices are mostly stable or declining, with only limited price increases expected in December. Private stockholders have a significant amount of unsold wheat and are struggling to clear inventory due to weak demand and the current market stability. Overall, the market sentiment shows cautious selling and selective liquidation of stored wheat. The liquidation of government stocks under the Open Market Sale Scheme (OMSS) continues, which is adding pressure on market prices and on stockholders' willingness to maintain inventories. The new wheat crop is expected to arrive by mid-March, which is impacting current storage and purchasing strategies.

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