June 4, 2010
Delhi sees sudden hike in price of wheat
Over the past three weeks, wheat prices in Delhi, India have jumped by over 8% or INR100 (US$2.14) to INR1,260 (US$27) a quintal.
''We were getting Uttar Pradesh wheat delivered at Bangalore at a price of INR1,250 (US$26.8) a quintal about a month ago. This has now increased to INR1,400 (US$30). Similarly, wheat from Madhya Pradesh was available at INR1,450 (US$31.1). But this has increased to INR1,600 (US$34.3),'' said M K Dattaraj of Bangalore-based wheat buyer. Dattaraj had turned to a trading agency and bought some Australian wheat.
Many wheat buyers feel that this sudden price movement in wheat is not justified as India had seen two consecutive years of record wheat production and the Indian government had also procured large quantities of wheat.
In 2008-09, the country produced 80.58 million tonnes of wheat, which rose marginally to 80.98 million tonnes in 2009-10. Last year, the government agencies procured a record 25.40 million tonnes of wheat. Procurement, so far, in the current year has been 22.41 million tonnes.
However, prices of wheat in states like Uttar Pradesh, Rajasthan and Madhya Pradesh have increased since mid-May. Wheat prices have risen about 10% at Hardoi, a trading centre in Uttar Pradesh. The state has seen significant interest from private buyers as well.
