Wheat Prices Steady to Firm Amid Active Buying from South India Millers

New Delhi, July 26 (CommoditiesControl): Wheat prices remained steady to firm across major centers today, supported by active buying from millers in South India. The lack of official notification regarding price control policies and a weak supply scenario continued to bolster prices.

Millers in South India, facing supply shortages at current rates, have increased their purchase prices. At Kandla port, a buyer raised the wheat price by INR 30, bringing it to INR 2670-2675 per quintal for delivery to South mills via sea route. Similarly, several South Indian millers have increased wheat purchase prices for road delivery, indicating a persistent weak supply scenario.

Price Movements in Key Regions:
- Delhi: Prices increased by INR 20 per quintal, reaching INR 2685 per quintal.
- Rajasthan: New wheat price increased by INR 20 per quintal, now at INR 2670 per quintal.
- Bengaluru: Prices rose by INR 20 per quintal, selling at INR 2910 (net).
- Madhya Pradesh: Prices increased by INR 20 per quintal, now at INR 2625 (ex warehouse).
- Uttar Pradesh: Prices up by INR 20 per quintal, now at INR 2610 per quintal.
- Uttarakhand: Maintained consistent trading at INR 2615 per quintal.
- Kolkata: Prices remained neutral at INR 2755 per quintal.
- Bihar: Prices increased by INR 15 per quintal, now at INR 2615 per quintal.
- Goa: Mill supply prices remained consistent at INR 2900 per quintal.

Government stocks are currently low, with only 6 million tons available for the Open Market Sale Scheme (OMSS) and Bharat Atta, compared to 10 million tons last year. The government has allocated 2 million tons for an exigency buffer. Due to this weak stock position, it is unlikely that the government will provide bulk wheat stocks for Bharat Atta.

As physical selling pressure remains weak and arrivals have significantly declined across India, wheat prices are expected to remain stable or potentially rise. With festive demand on the horizon, the offtake of processed wheat products is likely to increase, which could further support price improvements in the coming weeks.

Overall, the extent of any price rise will depend on forthcoming government policies aimed at controlling prices and the timing of any notifications related to these policies.