Wheat stocks go up to seven-year high following poor withdrawal

New Delhi, December 19, 2019, Thursday

In early December, wheat stock in the warehouse in the center rose to a seven-year high with 5 lakh tonnes. The high prices of wheat sold by the Food Corporation of India (FCI) have led to lower demand for goods.

Considering that farmers are harvesting more wheat in the current Ravi season, the current stocks with the government may be a cause for concern in the coming days. Wheat production is also expected to rise following higher acreage.

Traders and stockists have vacated huge stocks in the last few weeks in anticipation that prices will hit if the crop comes high, market sources said.

Because of the high prices charged by FCI, the millers are also buying wheat from the open market traders. In the current fiscal year, the wheat market price under the open market sale scheme has been fixed at Rs 5 per quintal. And every three months there is a provision to increase it by Rs.

Wheat mulch was set at Rs 5 per quintal in the season of 3-5, while for the season of 3-5, the price was fixed at Rs 5. FCI prices have been kept high to cut the cost of wheat. "Price should be kept practical to make FCI wheat attractive," said an official of the Roller Flour Millers Federation of India.

Due to the high taxation in Punjab and Haryana, millers are reluctant to buy from this market. Wheat acreage has increased by 5% over the current rabi season compared to last year. Wheat cultivation in Madhya Pradesh and Rajasthan is on the rise. The favorable weather has resulted in the speed of sowing of wheat.