Wheat prices continue to rise steadily, Know out the reasons behind this surge and whether the rate will cross ₹3200 per quintal

Wheat

Krishi Dunia

• 04 Jan, 2025 11:30 AM IST ,
• Updated Sat, 04 Jan 2025 12:30 PM

Wheat prices in India have been steadily rising, causing concern not only for farmers and traders but also for the general public. Despite the government's efforts, controlling wheat prices has proven difficult. Let’s explore the current situation and what potential changes lie ahead.

Reasons for the Rise in Wheat Prices:

1. Imbalance Between Demand and Supply:
   The shortage of wheat in the market has led to a price hike. While wheat was being sold for ₹3100 per quintal some time ago, it has now surged to ₹3165 per quintal.
2. Limited Effectiveness of Government Schemes:
   The government planned to sell wheat in small quantities, with small mills receiving 25 tons and large mills receiving 100 tons. However, this quantity is far less than the actual requirement of these mills.
3. Waiting for the New Crop:
   Since the new crop has yet to arrive, stabilizing the prices will be challenging until the fresh crop hits the market.

Wheat Prices in Various Markets:

Wheat prices vary across different markets in the country. Below are the current prices in some major markets:

• Delhi Market: ₹3165 per quintal
• Sirsa Market: ₹2850 per quintal
• Ailnabad Market: ₹2911 per quintal
• Bhuna Market: ₹3060 per quintal
• Sitapur Market: ₹2880 per quintal
• Gonda Market: ₹2930-₹2990 per quintal
• Karnal Market: ₹3060 per quintal
• Prayagraj Market: ₹2980-₹2990 per quintal
• Jaipur Market: ₹3130-₹3150 per quintal

Wheat Sowing and MSP Increase:

The government has increased the Minimum Support Price (MSP) of wheat by ₹150, bringing it to ₹2425 per quintal. Additionally, the sowing area for wheat is expected to rise by 6 lakh hectares compared to last year.

Impact of Inflation and Consumer Concern:

Wheat is an essential staple, and its rising prices have a direct impact on the general public. If prices are not controlled soon, consumers will face significant inflationary pressure.

Potential Steps for the Government:

1. Increase Supply:
   The government will need to release more wheat from its reserves to increase availability in the market.
2. Assist Mills:
   The supply to small and large mills must be increased to meet their needs.
3. Ban on Exports:
   Measures such as imposing a ban on wheat exports may be necessary to ensure domestic supply.

Will Wheat Prices Cross ₹3200?

Given the current situation, it is not unrealistic to expect wheat prices to cross ₹3200 per quintal in the near future.

Controlling wheat prices is a significant challenge for the government. It is essential to take timely and decisive actions to stabilize prices; otherwise, this issue could lead to a severe economic crisis for the general public.