Wheat prices up 4%, more hikes expected on festive demand

Wheat prices have jumped 4% in the last one week and festival season demand expected to kick in from mid-September, they are expected to rise further, despite the government claiming that the country has sufficient stocks.

Denying some reports claiming that India was going to import wheat, the Department of Food and Public Distribution issued a statement on Sunday saying the country has enough stock of wheat to take care of its domestic requirement and for the public distribution system.

Mill grade wheat prices increased by Rs 1//kg last week to range between Rs 24kg to Rs 25.50/kg in north India. "Heavy rainfall in the region reduces movement of wheat and the unwillingness of the stockists, who expect higher prices, resulted in prices going upward," said Navneet Chitlangia, vice president, the Roller Flour Mills Federation of India.

"Presently, the demand for flour is sluggish. However, as the festival season purchases of bulk consumers are likely to begin from September 10, prices are expected to increase further," said Chitlangia.