Wheat prices remain strong amid steady trading.

Despite some concerns that government scrutiny may increase, wheat prices remain strong. If there is no government intervention, further price increases are anticipated. The demand for wheat products like flour, maida, and suji is expected to remain robust during the festive season. The absence of wheat sales under the Open Market Sale Scheme (OMSS) is supporting price strength. Due to persistent demand from flour mills and atta chakki operators, wheat prices have risen by ₹70- 80 per quintal this week. Prices in Lawrence Road, Rajasthan, and Uttar Pradesh are closing at ₹2760-2770 per quintal, with similar increases of ₹20-50 per quintal observed in other regions such as Uttar Pradesh, Rajasthan, Bihar, and Madhya Pradesh. Despite the recent imposition of stock limits on wheat, a downturn in prices is unlikely due to adequate stock limits and private sector hoarding leading to shortages in the market. The government has not met its procurement target, with purchases remaining around 267 lakh metric tons as buying has ceased in Haryana, Punjab, Uttar Pradesh, and Rajasthan. The central pool is also low on old stocks due to extensive distribution under the free wheat scheme. Government sales of wheat in the open market could potentially curb the price rise.

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