There will be a shortage of wheat: If the government does not take immediate action, the price is bound to rise further

Sustained rise in wheat prices due to supply pull

Hard work for flour mills as a result of commodity shortage: New crop still two months away

Mumbai: The government seems to have failed to control rising wheat prices by increasing domestic supply. Last year, the wheat crop in the country was low and the government was buying it at a low support price due to which it is being discussed that the government has failed to release enough goods in the market.

In the current month, the price of wheat in the Indore market has increased by seven percent and is being discussed at around Rs 2,940 per quintal, while the price in the Delhi mandi is reaching Rs 3,150 per quintal, market sources said. In 2022, the price increased by 35 percent.

The government had banned the export of wheat in May last year due to poor harvest at home. Record high prices of wheat in the domestic market despite the ban on exports could be said to mean that the government does not have enough supplies, a trader said. Farmers have sold their goods and traders have also run out of stocks and demand is increasing, resulting in higher prices. In the next fifteen days, if the government does not release the goods in the market, the prices are likely to see another five to six percent increase, a trader also said.

Sources further said that due to shortage of wheat, the supply of flour and flour has also been disrupted. Lack of flour has increased the concern of manufacturers of bakery products. Flour mills were also said to be operating at 60 to 65 per cent of capacity as supply of wheat slowed down. Farmers also sold their produce at high prices in the open market instead of the government due to low wheat production last year. There was a sharp drop in purchases at support prices by the government.