After the Central government banned exports on May 13 of last year, at least 1.75 lakh tonnes of wheat that had been stored in warehouses near various ports around the nation were sold on the local market. After reaching record highs, wheat prices have since fallen. “After the government forbade exports last year, at least 2.25 lakh tonnes had been stored at several ports, primarily Kandla and Mundra. About 50,000 tonnes of this were exported since exporters had made the agreements prior to the restriction, according to a dealer who wished to remain anonymous.
The remaining items had been kept in the storage facilities of mostly large international trading companies including ITC, Agro-Corp, Louis Dreyfus, Viterra, Olam International, Gujarat Ambuja, and Bagadiya Brothers. “Exporters kept the wheat in good condition and the quality was unaltered in the warehouses. Even though some of them suffered losses, they were manageable, according to exporter Rajesh Paharia Jain of New Delhi. According to him, the grain from the storage facilities was sold to flour mills in Gujarat, Rajasthan, and South India.
Some of the exporters suffered losses as a result of having to sell their goods for less than they paid for them. A lot of exporters purchased wheat at around ₹26,000 per tonne, and some of them sold the inventories in August for ₹22,000 each. However, with prices surpassing ₹30,000 early this week, others have at least been able to make even. Wheat is reportedly priced at more than ₹28,500 in Madhya Pradesh and more than ₹31,000 in Uttar Pradesh, according to dealers. The wholesale cost of wheat has increased this week, according to data from Agmarket, a division of the Agriculture Ministry, to ₹2,930.31 per quintal. The price was ₹2,099.31 at the same time last year.
Tuesday saw a significant increase in the nationwide weighted average price of cereal, which increased to $2,853 per quintal at various APMC yards. Since the Ukraine crisis started in March of last year, wheat prices have soared. Due to the fact that 30% of the world’s wheat supply comes from Russia and Ukraine, there was an increase in demand for Indian wheat on the international market.