Wheat market is strong due to high demand and low arrivals

During last week, the demand for wheat remained strong at Rs 80 per quintal, due to increase in procurement at lower prices, wheat prices have increased by Rs 75/100 per quintal due to weak arrivals. This month, till May 18, about 30 lakh tonnes of wheat has arrived in the mandis, while 119 lakh tonnes have arrived in the last month. In the remaining 10 days of this month, it is difficult for the arrival of 90 lakh tonnes of wheat to reach the arrival of the last month. In the current month, the arrival of wheat in the mandis is weak. Wheat prices have increased due to the weakening of arrivals. Apart from this, the government procurement of wheat also seems to be lagging behind the target. But it may be noted that in order to control any increase in the prices of wheat, flour and other wheat products in the domestic division, the Central Government has decided to start selling wheat during every quarter from its stock in the open market which is likely to happen from July. If the government wheat stock keeps landing in the open market during every quarter, then its supply availability position will remain better and the upside potential in prices will be put on the brakes. Though the government is claiming more wheat production to offset losses due to unseasonal rains, trade estimates show the crop to be lower this year. That's why wheat market may increase in future. In a short time, the Delhi price can even go up to Rs 2,500/50 per quintal.

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