Indian wheat prices increase by 2-3% after govt says exports will continue

Wheat prices, which had decreased following rumours about India likely to curb wheat exports to tame domestic inflation, have rebounded again by 2-3% after the food secretary Sudhanshu Pandey clarified on Wednesday that the government has no plans to stop wheat exports.

Traders expect that the domestic wheat prices will continue to strengthen till wheat is being shipped out of the country.

Briefing the media about India’s stand on wheat exports in the capital on Wednesday, Pandey had said that the government is facilitating wheat exports in every possible way.

Traders said that the wheat prices had declined to Rs 2350/quintal in Mumbai after the rumors about the export ban started making rounds. After the government clarified that there is no plan to stop exports, the wheat prices have jumped back to Rs 2450/quintal.

Veteran flour miller and exporter Ajay Goel said, "There has been hardly any selling of wheat since the statement of the food secretary saying that the exports will continue. We are not able to get any wheat in the market."

"The prices may continue to move upwards till wheat continues to move out of the country," said Goel.

In the past, wheat used to sell around the MSP in the open market. Farmers have turned their back towards the government wheat purchase centres as private traders are buying wheat at 20% to 25% higher than the government purchase price.

Navneet Chitlangia, Vice President, Roller Flour Millers’ Federation of India said, "Wheat prices have started surging again at the auctions in mandis. Right now, availability of wheat at optimum price is the biggest problem being faced by the processors."

The central government has revised it's 2022-23 wheat production estimate downwards by 5.7% from 111.5 million tonnes to 105 million tonnes as a severe heatwave has adversely impacted the crop production.