It seems that the government has failed to control the rising prices of wheat by increasing the domestic supply. Last year, the wheat crop in the country was reduced and the government was buying it at a low support price, due to which it is being discussed that the government has failed to release enough goods in the market.
Market sources said that in the current month, the price of wheat has increased by seven percent in Indore market and is being discussed at around Rs 2,940 per quintal, while the price is reaching Rs 3,150 per quintal in Delhi’s mandi. In 2022, the price increased by 35 percent.
The government had banned the export of wheat in May last year due to crop failure at home. A trader said the record high prices of wheat in the domestic market despite the ban on exports could mean that the government does not have enough supplies. Farmers have sold their produce and traders have also run out of stock and demand is rising, resulting in higher prices. A trader also said that in the next fortnight, if the government does not release the goods in the market, the prices may see a further increase of five to six per cent.
Sources further said that due to the shortage of wheat, the supply of flour and flour has also been disrupted. The shortage of flour has raised concerns among manufacturers of bakery products. Flour mills were also asked to operate at 60 to 65 per cent capacity as the supply of wheat slowed down. Due to low wheat production last year, farmers also sold their produce at higher prices in the open market instead of the government. There was a sharp decline in procurement by the government at the support price.