Wheat prices fall sharply due to fall in reserve price, traders in trouble

New Delhi: After the central government reduced the reserve price of FCI wheat for wholesale customers, its prices have seen a sharp decline. The reserve price has now been reduced from Rs 2,350 to Rs 2,150 per quintal. The decision to sell wheat in the open market led to a rebound in wheat prices after a few days of decline in sales. After the fall in the reserve price, wheat is about Rs. 500 per quintal has become cheaper

Following the government's decision to sell wheat in the open market, wheat prices last month fell to Rs. 400 reduced to Rs. 2,550 were done. But after this reduction, after a few days the price increased to Rs. 2,700 per quintal. Last week, the government raised the reserve price of FCI wheat for wholesale customers at Rs. 2,350 reduced to Rs. 2,150 per quintal has been done. Since then, the price of wheat in the mandi has fallen to Rs 2,175 per quintal.

A Delhi trader says that due to the fall in reserve price, the price of wheat in Delhi markets has come down from Rs 2,800 to Rs 2,325 per quintal. So far, the price of wheat in the open market compared to the pre-sale has been around Rs. 900 per quintal has decreased. Despite the big fall in wholesale prices, the retail price of wheat has fallen marginally.

The fall in the reserve price has added to the woes of wheat traders as prices of wheat bought at high prices are now fetching low prices. Due to which they have to bear loss. In the last few months, traders have collected Rs. 2,800 to Rs. 3,000 has purchased a large quantity of wheat.

While now its price has reduced to Rs. 2,150 to Rs. 2,350 per quintal. In such a situation, traders will suffer a loss of up to Rs 700 per quintal. Traders have been hit hard by the steep drop in wheat prices. The arrival of the new crop is unlikely to increase wheat prices. In such a situation there is no hope of meeting this deficit.

To bring down the price of wheat and its flour, the central government has announced to sell another twenty lakh tonnes of wheat in the open market. Earlier on January 25, the government had announced the sale of 30 lakh tonnes of wheat. This sale was started from 1st February. The government has decided to release the goods from the buffer stocks. Along with the release of wheat in the open market, the price of wheat has been reduced by seven to twenty percent with private traders in various mandis of the country.