Wheat Price Hike: A big jump is being seen in the prices of wheat before the festivals. In view of the huge demand due to the festive season, the price of wheat in the domestic market has reached an 8-month high. In such a situation, it is believed that to control the increase in prices, the government can release more wheat from its inventory in the open market. Also the upcoming assembly elections and
According to Reuters report, wheat in Delhi rose by 1.6 percent on Tuesday, October 17 to reach Rs 27,390 per metric ton, which is the highest price since February 10, 2023. In the last six months, wheat prices have increased by 22 percent. If wheat prices continue to rise, we may see an increase in retail inflation and food inflation may rise. If we look at the government data, the average price of wheat has reached Rs 30.29 per kg on October 17, 2023, while the maximum price is Rs 58 per kg. After the arrival of the new crop of wheat in the market on May 1, 2023, the average price was Rs 28.74 per kg and the maximum price was Rs 49 per kg. Obviously the rise in wheat prices continues. The new crop of wheat is expected to reach the market only after March 15, 2024, so to control the prices, the government will have to release wheat from its quota in the open market. To promote the import of wheat, there is also a demand to abolish the import duty. At present, the government imposes 40 percent import duty on wheat, which makes the import very expensive, due to which traders shy away from importing. As on October 1, 2023, the stock of wheat in the government warehouse was 24 million metric tons, which is much less than the five-year average of 37.6 million metric tons. At the same time, experts believe that due to El Nino, wheat production may be affected in the Rabi season. Also read Get more latest business news updates
Wheat Price Hike: Due to increase in demand in the festive season, there was a sharp rise in the prices of wheat, the price increased by 22 percent in 6 months.
