Mandi costs of wheat had been ruling simply above the minimal assist value (MSP) on Wednesday in Rajasthan, Uttar Pradesh, Gujarat and Delhi.
Trade sources informed FE that in Punjab and Haryana, arrivals of wheat in mandis have been minuscule, whereas markets in Madhya Pradesh had been closed for the final two days as merchants have been protesting in opposition to an abrupt ban on wheat exports imposed by the federal government final week.
Traders say that solely a small amount of wheat crop is held by farmers at present, as main chunks have been bought by merchants by paying increased than MSP costs in anticipation of a surge in exports.
In Rajasthan, Delhi and Gujarat on Wednesday, mandi costs of wheat had been within the vary of Rs 2,050 a quintal to Rs 2,100 a quintal in opposition to MSP of Rs 2,015 a quintal. “Arrivals have dipped because of a decline in prices following the government announcing a ban on wheat export,” Mukesh Khatod, a dealer from Chittorgarh, Rajasthan, stated.
On Monday, mandi costs of wheat had declined by 8% to Rs 2,150 a quintal from Rs 2,325 a quintal in Rajasthan, Gujarat and Delhi mandis due to the ban imposed by the federal government final Saturday.
At Sitapur mandi in Uttar Pradesh, India’s largest producer of wheat, mandi costs had been Rs 2,020 per quintal on Wednesday.
“Wheat prices will be ruling around the MSP in the next couple of weeks,” Gagaan Gupta, a dealer and fee agent at Sehore mandi in Madhya Pradesh, stated. However, he stated the amount of arrivals would stay small as a lot of the merchants and exporters have accomplished procurement operations of wheat by now.
In Sehore, one of many largest wheat markets in Madhya Pradesh, merchants stated that wheat-loaded vehicles shifting in the direction of Mundra or Gandhidham port in Gujarat have been halted and there, over 150 vehicles of merchants who function within the mandi are caught at port. As reported earlier, round 6,000 vehicles have been caught in Kandla, as all loading of wheat into ships was stopped following the ban on exports.
However, the federal government had given leisure in permitting exports of 0.35 million tonne (mt), in addition to these consignment having letters of credit score. Overall, India may export round 4.5 mt of wheat within the present yr.
Amid the stories of drop in wheat manufacturing to 105 mt from the sooner estimate of 111 mt for the 2021-22 crop yr (July-June), authorities businesses have to date procured 18.09 mt of wheat from farmers, largely in the important thing rising states of Punjab, Haryana, Uttar Pradesh and Madhya Pradesh, until Tuesday — a decline of greater than 51% in comparison with the identical interval within the earlier yr.
Arrivals of wheat in mandis throughout the states have dipped regardless of the federal government asserting extension of the wheat procurement date for Punjab and Haryana to May 31, whereas buy operations might be allowed in Uttar Pradesh and Madhya Pradesh until June 15.
“Overall procurement is not likely to touch 18.5 mt despite the extension of date of purchase,” an official stated.
According to an official word, greater than 1.7 million farmers have benefited from the continuing rabi buy by authorities businesses with an MSP fee of Rs 36,469 crore.
Source: www.financialexpress.com”