Mandi costs of wheat have declined 7-8% on Monday in Rajasthan, Gujarat and Delhi owing to the export ban introduced on Friday.
In Chittorgarh mandi, Rajasthan, wheat costs have declined greater than 8% to Rs 2,125 a quintal from Rs 2,325 a quintal on Friday. Similarly in Delhi, mandi costs have declined greater than 7% to Rs 2,120 a quintal. “Traders who purchased wheat from farmers by paying Rs 150-200 a quintal more than the minimum support price of Rs 2,015/quintal for exports purpose will now have to release their stocks in the domestic market,” Mukesh Ghatod, a dealer from Chittorgarh, Rajasthan mentioned.
In Sehore, one of many greatest wheat markets in Madhya Pradesh, merchants say that wheat-loaded vans shifting in direction of Mundra and Gandhidham ports in Gujarat have been halted. Mandis in Madhya Pradesh remained closed on Monday. “Exporters have asked us not to load wheat into vehicles,” Gagaan Gupta, a dealer and fee agent, at Sehore mandi, mentioned.
Wheat costs have declined round 8% since Friday in mandis throughout Gujarat. In Punjab and Haryana, the place procurement operations have been largely accomplished, a number of farmers offered wheat at round Rs 2,020 per quintal on Monday, simply above the MSP.
Punjab mandis reported wheat arrivals of simply 144 tonne on Sunday. “The resolution to ban wheat export was well timed and it will improve home availability of grain and costs would soften,’ Anjani Agarwal, president, Roller and Flour Millers Federation of India, mentioned.
Trade sources mentioned that at Kandla port, from the place a bulk of wheat is being exported, there are round 5,000 vans (25 to 30 tonne capability every) ready for the consignment to be unloaded.
According to a Mumbai-based exporter, big losses shall be incurred by those that have booked their consignment however but to obtain the letter of credit score. “They will liquidate their stocks in the local market at much lower prices,” Kunal Shah, accomplice of Kunal Corporation, mentioned.
The export ban has come at a time when merchants have obtained orders for 4.5 million tonne (MT) and had been taking a look at extra offers within the brief time period, consistent with an export goal of 10 MT set by the federal government. The world wheat market could be very unstable at current and costs stay elevated, owing to the scarcity brought on by the Russia-Ukraina conflict.
Of course, the ban gained’t be relevant to 2 sorts of shipments — exports dedicated by the Indian authorities beneath bilateral understanding with a number of international locations to satisfy their meals safety wants and shipments beneath transitional preparations, the place irrevocable letters of credit score have been issued previous to the ban.
Meanwhile, Egypt on Sunday has authorized import of 0.5 MT of wheat from India.
Government companies have to date procured 18.03 MT of wheat from farmers, principally in key rising states of Punjab, Haryana, Uttar Pradesh and Madhya Pradesh, until Sunday — a decline of 51% in comparison with the identical interval within the earlier yr. The authorities has introduced extension of wheat procurement date for Punjab and Haryana to May 31 whereas buy operations shall be allowed in Uttar Pradesh and Madhya Pradesh until June 15. Out of round 1,700 procurement factors in Punjab, 1,500 have been closed.
Source: www.financialexpress.com”