Wheat : Prices may fall because of record wheat crop yield
September 23, 2017 at 8:57 AM ,
Rainbow Exports
Because of record wheat crop yield,prices may fall:
Good news is before the festive season begins. In the coming days, the prices of wheat, flour, semolina and flour are expected to come down. There is so much supply of wheat in the market that the buyers who have been discharged from the Food Corporation of India for sale in the open market are not getting buyers. Due to the record production of wheat in the country this year, flour mills have enough wheat to meet their needs. In the coming days, the supply of wheat is expected to increase, due to which the expected increase in prices of wheat and its products has increased.
Food Corporation of India has procured 13,76,050 tonnes of wheat till the second week of September for sale in the open market. But just so much of the wheat has been sold only 2,08,400 tons. Most of the wheat is procured by state governments. Private companies have bought only 9,750 tonnes of wheat from this. Private companies have plenty of stock of wheat due to which they are avoiding buying government wheat.
This year, there has been a record production of wheat in the country. According to the Ministry of Agriculture, during the year 2016-17, a total of 98.38 million tonnes of wheat has been produced in the country, which is a record of so far. Last year, 92.29 million tonnes of wheat was produced in the country. Due to so much wheat production, its supply is sufficient in the country and there is a possibility of further pressure on its prices.
Import of 0.8 million tons of wheat during September and October
During the month of September and October, about 0.8 million tonnes of wheat is imported from Black Sea region. The reason for this is that the mill owners are stocking in view of lower domestic supply estimates. According to the agricultural arrival data, India will import 2,47,000 tonnes of wheat in September, which is the highest monthly import since February this year. In September, 5 shipments of wheat from Ukraine are expected to arrive.
According to sources, the import of wheat in October is estimated to be more than 500,000 tonnes. A businessman from India said, the consumption of wheat imported this month will be in November and December. "There are speculations that the supply will remain low and prices will rise in the end of this year." A trader from Singapore trading company said that most of the wheat deals in the Black Sea region are going from $200 to $210 per tonne, including cost and freight. If 10 percent of the import duty is added then the cost of imported wheat will be equal to the current prices of domestic wheat.
According to the traders' prices do not have much benefit in terms of prices. Meetings are only making purchases to ensure adequate availability. Due to unfavorable weather, due to low production for two consecutive years, the country started importing wheat last year. Data released by the Ministry of Businessmen say that despite the improvement in production in the country, the import of wheat has also increased.
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