November 23, 2009

 

No price reduction on India wheat prices for bulk users 

 

 

India has decided not to lower the prices of wheat to be sold from federal stocks to bulk consumers until December, Sharad Pawar, the federal agriculture minister, said Saturday (November 22).

 

India, the world's second largest wheat producer, last month allowed the sale of 500,000 tonnes of wheat at prices higher than current state-set purchase prices from farmers, triggering a surge in both spot and futures markets from mid-October.


The price fixed by state-run Food Corporation of India was INR1,389.95 (US$29.94) to INR1,789.70 (US$38.55) per 100 kilograms for wheat sales in the national capital Delhi.

 

The state-set purchase price of wheat from farmers for 2009-10 fiscal ending March 31 was INR10,800/tonne, which has been raised to INR11,000/tonne for the 2010-11 fiscal starting April.

 

Pawar said an inter-ministerial Indian panel, which met Friday, decided not to lower the prices of wheat to be sold to bulk consumers.

 

"What we are asking from bulk consumers is our acquisition cost, transportation cost and carrying cost up to a month of lifting the grain," the minister said on the sidelines of a conference.

 

Pawar said the process to sell wheat in the local market will start in eight to 10 days.

 

India's wheat stocks as on Nov. 1 stood at 26.8 million tonnes.

 

US$ = INR46.42 (Nov 23) 
   

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