Trade sources revealed that Indian wheat prices hit a new record high on Monday, after the government delayed releasing additional stocks to boost supplies and calm the domestic market, which is suffering from a shortage caused by last year’s low harvest.
Market traders explained that record-high wheat prices despite the export ban indicate a much larger decline in production, as wheat production fell to 106.84 million tons in 2022, from 109.59 million tons a year earlier, according to government estimates, it said. Reuters.
Gopaldas Agarwal, a trader based in the central Indian city of Indore, said that there is strong demand, at a time when farmers have sold their crops, and traders have run out of stocks, as the mismatch between supply and demand leads to higher prices, and prices will remain constant, until supplies start from the crop. new season.
Indore market wheat prices, a benchmark, jumped to a record 29,375 rupees ($361.09) per tonne, up nearly 7 percent so far this month, after surging 37 percent in 2022.--
“Even bulk consumers like wheat flour mills are suffering from low supplies and high prices,” added Rajesh Bhariya Jain, a New Delhi-based trader.-
Wheat prices in New Delhi rose about 2% on Monday to a record high of 31,508 rupees ($386.38). Expectations are that local wheat prices may rise by another 5-6% unless the government releases stocks in the next 15 days.
India, the world’s second-largest wheat producer, banned exports in May 2022 after a sudden rise in temperatures slashed production, though export prices rebounded to counter global shortages caused by Russia’s invasion of Ukraine.