Wheat prices poised to gain as open-market sales stall

Upasika Singhal MUMBAI

Prices of wheat, maize and rice remained largely unchanged across key spot markets in India on Thursday, although traders expect wheat prices to strengthen if the government does not soon announce the schedule for open-market wheat sales.In Indore, wheat prices held steady at ₹2,840 per 100 kg, supported by firm demand from millers and traders ahead of the festive season. 

Demand is expected to gather pace from mid-August with Raksha Bandhan, followed by Ganesh Chaturthi, Navratri, Dussehra and Diwali. The subsequent wedding season is also likely to keep consumption elevated through the end of the year.

In Kota, Rajasthan, wheat prices remained stable at ₹2,550 per 100 kg, with arrivals unchanged at around 7,000 bags of 50 kg each. Traders said the market is awaiting clarity on the government's open-market sale programme, with expectations that the schedule could be announced by mid-August.In Vashi, Navi Mumbai, wheat prices were steady at ₹2,900 per 100 kg. Market participants said millers and traders were gradually depleting their inventories, while arrivals remained limited. 

They believe prices could move higher if open-market sales are delayed further, making it difficult to meet festive demand. Maize prices in Indore were unchanged at ₹2,415 per 100 kg, as subdued demand matched limited supplies. Traders are also monitoring the progress of the kharif maize crop, with lower acreage compared with last year expected to provide price support in the coming months.

Basmati rice prices in Vashi were also steady, with the 1401 variety at ₹9,600-₹9,700, 1509 at ₹8,200-₹8,300, and 1121 at ₹10,000-₹10,200 per 100 kg. Traders continued to watch developments in West Asia, a key export market for Indian basmati rice.  

Looking ahead, traders expect wheat to remain the most closely watched grain, with any announcement on open-market sales likely to influence prices and availability. Maize and rice are expected to trade within a stable range, although crop progress, festive demand and developments in West Asia will continue shaping market sentiment.