India’s wheat price rises to a record high

Wheat prices in India have soared to historic highs amid strong demand and tight supplies, Reuters reports, citing industry officials.

The government’s delay in releasing stockpiles has accelerated this price rise, contributing to a rise in retail inflation already caused by a sharp rise in the price of vegetables.

This surge in inflation has dashed hopes of an interest rate cut by the central bank next month. Market supplies are scarce as shareholders are unwilling to part with wheat at discounted prices, explained Pramod Kumar, a flour miller. He noted that the release of government stocks could stabilize prices.

According to the industry, supplies to the market are scarce as stock holders are unwilling to part with wheat at discounted prices. The release of government stocks could stabilize prices, the sources added.

In September last year, New Delhi had reduced wheat stock limits for traders and flour millers in a bid to increase market supply and contain prices. However, the measure has not prevented price inflation, with current Indore prices at Rs 30,000 per metric ton, much higher than earlier this year. Traders predict further price increases if the new crop is not available by March.

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Tags: prices, wheat, India