Commodities

Uncertain weather hits demand for wheat

Our Correspondent Karnal | Updated on February 15, 2011

Wheat   -  Business Line





Uncertain weather affected wheat trading on Tuesday. Prices of Dara wheat ruled at Rs 1,250-1,260 a quintal. Quality wheat witnessed correction and dropped to Rs 1,330 a quintal against Rs 1,350 quoted last weekend. Aaj Tak and desi wheat varieties ruled firm at Rs 2,400 a quintal on Tuesday.

Around 300 quintals of Dara variety was offloaded by local stockists. Around 3,000 quintals Dara variety was procured from the Food Corporation of India at Rs 1,290 a quintal (including VAT). Prices have also remained firm since last week as stocks meant for people below poverty line have been coming in the open market for sale. The demand is getting sluggish because of uncertain weather, and prices may weaken this week, said Mr Mohan Lal of G.G Agro Foods.

Even though experts are expecting a record production this year, it's unlikely the Government will allow exports till June, until the crop is harvested. Recent rain has also boosted expectations of record production. Following the Food and Agriculture Organisation's recent alert about the impact of loss of wheat crop in China on global supply and prices, the Govternmen doesn't want to take chances at the growing stage of the crop, experts said.

According to reports, as on January 1, the Government godowns had 21.5 million tonnes of wheat, against the buffer norm of 11.2 million tonnes.

Flour prices

Flour prices dropped marginally by Rs 10 to Rs 1,260 a quintal. Chokar prices witnessed a steady trend at Rs 560-565 for a 49-kg bag.

Published on February 15, 2011

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