New Delhi. Wheat prices have started increasing once again in the country in the last few weeks. Traders believe that to control the high price of wheat, the central government may be forced to take many more steps including cutting its import duty, so that availability of cheap wheat can be ensured in many parts of the country.
Market participants say that if the prices of wheat do not come down, then steps can be taken by the government like giving some extra wheat to private traders from the central pool and curbing excess wheat. However, there is no such official confirmation yet.
Traders say that if the government takes some such steps, the price of flour will not increase much during the festive season, which is starting in August. At present, India imposes a 40% import duty on wheat imports.
Prices are increasing due to an increase in demand and less supply, as the wheat crop in the country has been damaged due to heat waves. Meanwhile, the flour mill owners have demanded the government waive the import duty on wheat. The Center has imposed several restrictions and restrictions on wheat exports during the last few months to control the price.
This much export: According to the Ministry of Food, India exported about 95,167 tonnes of flour in April 2022, which was 26,000 tonnes in April 2021. It increased by 267%. In the financial year 2022, India exported a record 7 million tonnes of wheat.
Cheaper in India than abroad: Wheat prices have crossed Rs 2700 per quintal in many cities. Despite this, domestic wheat prices are lower than in the global markets. But Russia and Ukraine have allowed the movement of stored wheat. America is expected to have a vigorous wheat crop. In this case, the prices may fall.
Country share of exports
Russia 17.62%
USA 14.07%
Canada 14.02%
France 10.1%
Ukraine 8.0%
Australia 6.08%
Argentina 4.71%
Germany 4.68%
Kazakhstan 2.53%
Poland 2.53%
