Wheat Price

Wheat prices have risen again before Diwali, causing concern in the national capital Delhi where it has reached Rs 27,390 per metric ton in the wholesale market. It is expected that the prices may continue to rise in the coming days, as they did in January when wheat prices reached their highest level. Despite the Central Government's efforts, inflation has remained high, with one item's price rising as soon as another's falls. While the prices of tomatoes and green vegetables have gone down, wheat has become more expensive, potentially leading to food inflation. Traders have also noted that food imports are being affected by import duties, putting pressure on the government to remove export duties. As a result, the Central Government must release food items like wheat and rice from government reserves periodically to control inflation. The government must take proactive measures to control the prices of essential commodities, especially before the festive season, to provide relief to the common man.

Due to the increase in the price of wheat, the price of these food items will also increase.

According to agricultural experts, the demand for wheat has increased in the market due to festive days. At the same time, the supply of wheat has been greatly affected due to the increase in demand, due to which the prices have reached their highest level in 8 months. If this trend of increase in prices continues, retail inflation may increase further in the coming days. Wheat is a grain from which various types of food items are prepared. If the price of wheat increases, various food items including rotis, biscuits, pieces of bread, and cakes will become costlier.

40% import duty on wheat by the Government of India

The main thing is that the price of wheat in the national capital Delhi increased by 1.6% on Tuesday. Due to this, the price of wheat reached Rs 27,390 per metric ton in the wholesale market, which is the highest level since February 10. It is being said that wheat prices have increased by approximately 22% in the last six months. Also, Roller Floor Millers Federation President Pramod Kumar S has raised the demand with the Central Government to remove duty on wheat import. In fact, he has said that if the government removes the import duty on wheat, then its price can definitely come down. In fact, the Government of India has imposed a 40% import duty on wheat, and there does not seem to be any immediate plan to remove it.

Also read: Countrymen will not face the shock of inflation during the festive season – Food Secretary Sanjeev Chopra

Food prices will fall like this

Also, as of October 1, there were only 24 million metric tons of wheat in the government wheat stock. Which is much less compared to the five-year average of 37.6 million tonnes. However, the Center has procured 26.2 million tonnes of wheat from farmers in crop season 2023, short of the target of 34.15 million tonnes. At the same time, the Central Government estimates that wheat production in the crop season 2023-24 will be around 112.74 million metric tons. This will lead to a decline in the prices of food items.

It is the responsibility of the government to keep the prices of wheat and flour under control. Now as we all know, the increase in food prices is being seen. For this, the government has sold 3.46 lakh tonnes of wheat and 13,164 tonnes of rice in the open market to reduce prices. However, it is planned to launch 5 lakh tonnes and food grains in the market, so that prices can be kept under control. Increasing inflation of food items has increased the concern of the government. To maintain adequate availability in the market, the government has launched about 4 lakh tonnes of wheat and rice in the open market. At the same time, preparations are currently going on to take 5 lakh tonnes of grains and unload them. It is being said that by the second week of January, these food grains will be launched in the open market.

FCI is providing food grains to these wholesalers 

The central government is providing food grains procurement and distribution nodal agency in the open market through the Food Corporation of India (FCI). Under efforts to control retail prices, wholesale consumers have sold 3.46 lakh tonnes of wheat and 13,164 tonnes of rice this week through e-auction. Last year, rice sales were 3,300 MT.

Also read: Government took steps to prevent boom in pulses prices

At how much rice has been sold sold

In the 26th e-auction, 4 lakh tonnes of wheat and 1.93 lakh tonnes of rice were sold to wholesalers, after which 3.46 lakh tonnes of wheat and 13,164 tonnes of rice were sold to wholesalers . The average price of wheat has been fixed at Rs 2,178.24 per quintal. At the same time, rice was sold at an average price of Rs 2905.40 per quintal.

What is being done by the government for food safety?

The central government is selling wheat and rice from its buffer stock to control retail prices under the Open Market Sales Scheme (OMSS). The government has allocated 101.5 lakh tonnes of wheat for sale under the OMSS by March 2024. The central government has said that the government will continue the weekly e-auction of both wheat and rice to curb retail prices of rice, wheat and flour. Under this, there is now a plan to launch about 5 lakh tonnes of wheat and rice in the open market by the second week of January 2024.