Indian wheat prices hit a fresh record high on Monday, following a delay in releasing extra stocks by the government to boost supplies and calm the domestic market reeling from shortages triggered by last year’s lower crop, dealers and farmers said. India, the world’s second biggest producer of wheat, banned exports in May 2022 after a sudden rise in temperatures clipped output, even as exports picked up to meet the global shortfall triggered by Russia’s invasion of Ukraine.
Record-high wheat prices despite the export ban indicate a far bigger drop in last year’s output, traders say. According to government estimates, wheat output fell to 106.84 million tonnes in 2022 from 109.59 million tonnes a year earlier. “Farmers have sold their crop, traders’ are running out of stocks, but demand is robust,” said Gopaldas Agarwal, a trader based in the central Indian city of Indore. “Demand-supply mismatch is pushing up prices, and prices will remain firm until supplies start from the new season crop.”
Farmers plant wheat in October and November, with harvests from March.
Wheat prices in the Indore market – a benchmark – jumped to a record 29,375 rupees ($361.09) a tonne, up nearly 7 percent so far this month after rising 37 percent in 2022. In New Delhi, Indian wheat prices rose nearly 2 percent on Monday to a record 31,508 rupees($386.60). Local wheat prices could rise by another 5 percent to 6 percent unless the government releases stocks in the next 15 days, said a dealer with a global trading firm. He did not wish to be named in line with his company’s policy.
“Even bulk consumers like wheat flour millers are struggling with lower supplies and higher prices,” said Rajesh Paharia Jain, a New Delhi-based trader. “Clearly, for the government, there is no time for procrastination.” Authorities have repeatedly said the government would offer 2 to 3 million tonnes of wheat from its reserves to help flour millers and biscuit makers as part of efforts to cool record-high prices.
Source: financial express
Import/Export Statistics
Please click to reach our marketplace
The following reports may be of interest to you:
Related posts:
India: Wheat Exports Banned to Ensure Enough Supply in Domestic Market USDA said the production of food commodities such as wheat, maize (corn) and soybean could all be lower this year 
Russia Ukraine Crises Cuts Off Black Sea Supplies India's Wheat Export All Time High 
The Forecast Of Wheat and Corn Production In Ukraine Remained Unchanged 
India’s wheat exports All-time high in 2021-22 Wheat exports rose by more than 527 per cent to 3.2 mt during the first seven months (April-October) of the current fiscal year 
India: Sowing Area of Pulses, Oil Seeds and Wheat Increased 
Record global cereals production, trade likely despite setbacks FAO report says inventories may be lower on higher utilisation 
Price of Hungarian Wheat remains stable 
First results of 2021 wheat crop in Hungary