India’s wheat prices have risen during the festival season, despite curbs on traders and processors. New Delhi recently reduced the limit of wheat stocks traders and millers can hold to boost availability and moderate prices.
However, these measures have not reduced prices, which are currently trading at 28,416 rupees ($339.53) per metric ton in New Delhi. The market is awaiting the government’s auctioning of wheat to private players, as demand is expected to rise next month due to festivals and limited supplies.
The government initially planned to sell wheat from its state reserves to bulk consumers in July, but this was delayed and has not been updated. Last year, the government started selling wheat from its reserves in June, selling nearly 10 million tons between June 2023 and March 2024. This helped bulk buyers secure supplies of the staple at affordable costs.
However, due to a limited surplus with the government this year, the government is reluctant to release large quantities of its wheat stocks in 2024 and aims to maintain sufficient reserves for the first quarter of 2025.
