Even after 10 days of banning wheat export, there is no significant reduction in its rate. Even now, its price is running more than the Minimum Support Price (MSP) in all the mandis of the country. The situation is similar in the mandis of Uttar Pradesh, the country’s largest wheat producing state. On Monday, its average price in many mandis was above Rs 2100 per quintal. Whereas, the government had banned exports to control domestic inflation. Now that the Center has clarified that there will be a reduction of only 36 lakh metric tonnes in the production, yet the price of wheat in the market is getting more than the government mandis. What is the reason behind this?
Government procurement has not even been half of the target. Haryana Chief Minister Manohar Lal felt pain about this. Responding to a question, he said that the mandis are open across the state, but it is seen that wheat is not coming to the market. The government has announced the reopening of the mandis, till then the system will remain in the mandis. The farmer can still come to sell wheat. It is clear that farmers are still getting more price than MSP, so a Chief Minister is compelled to say such a thing.
Minimum price of wheat was higher than MSP in these mandis
Now let’s talk about UP, which alone produces about 35 percent of the country’s wheat. In many mandis here, the minimum price of wheat is also more than the MSP. The central government has fixed the MSP of wheat at Rs 2015 per quintal for 2022-23. While the minimum price of wheat in the grain markets of Fatehpur Sikri, Firozabad, Mathura, Meerut, Kosikalan, Ghaziabad, Hathras, Muzaffarnagar and Agra was also higher than the MSP on 23 May.
Agriculture expert Binod Anand says that the production of wheat is estimated to be low in many countries of the world. Its major producing countries are embroiled in the Russia-Ukraine war. Therefore, farmers feel that it may be more profitable to store than to sell now. Wheat season has just ended. If the price is rising now, then there can be more profit in the future. Thinking this, the farmers are keeping the wheat withheld.
What will be the production in the country
According to the third advance estimate of major crops, the total production of wheat during the year 2021-22 will be 106.41 million tonnes. Whereas the government had set a target of 110 million tonnes of production. In this way, there has been a reduction of only 36 lakh metric tonnes in production. Yet this year, due to high exports, wheat is being spoken in the market. In view of rising inflation and low production, on May 13, the central government had banned its export.
Wheat price in various mandis of UP
- The average price of wheat in Etah Mandi of Uttar Pradesh was Rs 2160 while the maximum price was Rs 2200 per quintal.
- In Dadri Anaj Mandi of Gautam Buddha Nagar, the maximum rate was Rs 2170 while the average price was Rs 2130 per quintal.
- In Fatehpur Sikri Mandi of Agra, the minimum price of wheat was 2100, maximum 2200 and the average price was Rs 2155.
- In Firozabad mandi, the minimum price was Rs 2135, maximum 2180 while the average price was Rs 2160 per quintal.
- In Mathura Mandi, the minimum price was Rs 2138, the maximum was Rs 2180 while the average rate was Rs 2150 per quintal.
- In Meerut Mandi, the minimum price was Rs 2100, maximum 2200 and the average price was Rs 2165 per quintal.
- In Mathura’s Kosikalan Mandi, the maximum price was Rs 2200, the average rate was 2190 while the minimum rate was Rs 2175 per quintal.
- In Ghaziabad mandi, the minimum price of wheat was 2140, maximum 2160 while the average price was Rs 2150 per quintal.
- In Hathras Mandi, the minimum price of wheat was 2120, maximum 2200 while the average price was Rs 2160 per quintal.
- The price of wheat in Agra Mandi was minimum 2100, maximum 2200 and average rate of Rs 2150 per quintal.
(23/05/2022)
Wheat prices will continue to rise
According to Tarun Satsangi, Assistant General Manager (Commodity Research), Origo E-Mandi, the demand for wheat in the open market will remain high, with the rise in wheat prices due to short supply. The price of wheat can cross the level of Rs 3,000 per quintal till the long period i.e. before the new supply.
After the ban on exports by the government, on Monday, May 16, 2022, there was a fall of about 3 percent in the prices of wheat in the domestic market. Tarun says that in the short term, there is a possibility of a correction in the prices due to the traders withdrawing their stock. However, there is little chance of further weakness in wheat prices.
