Wheat Price Hike: The rise in wheat prices is not taking its name to stop. The price of wheat in the country has reached the highest level in six months. Due to the upcoming festival season and increase in demand, the prices of wheat have increased.
After this sharp jump in the prices of wheat it is expected that the government may abolish the duty on the import of wheat, due to which many state assemblies will be held in the coming days and in 2024 before the Lok Sabha elections wheat prices can be controlled.
If the rise in the prices of wheat continues, due to this many other things from flour to wheat can become expensive. From biscuits to bread, the prices of many things can increase. Similarly, food inflation increased from 2.96 percent to 4.49 percent in the month of June. And if this rise in wheat prices continues, further increase in food inflation can be seen.
According to a Reuters report, a trader told that the supply coming from the farmers in the major wheat producing states has come to a standstill. Flour mills are not able to buy enough stock of wheat. In Madhya Pradesh’s Indore, wheat prices have risen by 1.5 per cent to reach Rs 25,446 per metric ton, which is the highest since February 10, 2023. Wheat prices have increased by 18 per cent in the last four months.
As on August 1, there was 28.3 million metric tonnes of wheat stock in the government godowns, which used to be 26.6 million metric tonnes a year ago. Traders are of the view that the government should sell wheat from its stock in the open market to maintain supply during the festive season and avoid shortage.
Last week itself, the government had indicated to abolish 40 percent duty on wheat imports. Experts believe that import is very important for the reduction in prices. In fact, in spite of excellent wheat production this year, the government did not lift the ban on exports in view of the elections.
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