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Home Asian News

Concern among people as wheat prices reach record levels in the country

by Chandler
January 26, 2023
Reading Time: 3min read
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New Delhi, The price of wheat in the country has reached a record level on Monday. A Reuters report cited dealers and farmers as saying that last year’s low output has led to a shortage of wheat in the domestic market. The government is delaying the release of additional stock.

Due to this, the supply in the market is less and the prices are increasing. India ranks second in wheat production in the world. But last year wheat production was affected due to rising heat. After Russia’s attack on Ukraine, there was a worldwide wheat crisis.

Due to this, exports from India started to increase and domestic prices were increasing. To deal with this situation, the government banned the export of wheat in May 2022. But despite the ban on exports, wheat prices in the country are not declining.

Traders say this is an indication that wheat production was down significantly last year. According to government data, wheat production in the country was 106.84 million tonnes in 2022, up from 109.59 million tonnes a year ago. Farmers have sold their crops, traders are out of wheat but demand is strong.

Prices are rising due to supply not matching demand. Prices are not expected to drop until the next harvest. Wheat is planted in the country in October-November and harvested in March.

The price of wheat in Indore market has reached a record level of Rs 29,375 per tonne. Its price has increased by seven percent this month. Last year, the price of wheat in the country increased by 37 percent. On Monday, wheat prices in Delhi rose by nearly two percent to Rs 31,508 per tonne.

According to experts, if the government does not declare the stock of wheat in the next 15 days, then its price may increase by five to six percent. The government says it will take measures to prevent wheat prices from rising. The government may release 20 to 3 million tonnes of wheat from its stocks to help mill owners and biscuit manufacturers.

Around 18 million tonnes of wheat was available in the central pool till December 15. The purchase of new crop of wheat will start from April 2023. Average retail price of wheat was Rs 32.25 per kg on December 27, as against Rs 28.53 per kg a year ago, according to consumer affairs ministry data.

Even a year ago the price of wheat flour was Rs. 31.74 per kg as against Rs. 37.25 per kg remained flat. Prospects for the new crop of wheat are looking better as the total area under cultivation is higher by now. To meet the shortage of wheat in the open market, flour mills have demanded the government to release wheat stocks from Hlzrain godowns in the market.SS1MS

.Source

Tags: amongconcerncountrylevelspeoplepricesreachrecordwheat

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