Record increase in wheat prices before Diwali

Published on: 20-Oct-2023

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.