Sluggish domestic demand coupled with low quality pulled dara wheat prices below Rs 1,120 a quintal, the minimum support price, once again, on Thursday. After witnessing a drop earlier this week, Dara variety dropped further by Rs 20 to Rs 1,105 a quintal.

The support price for this season is Rs 1,120 a quintal and the Government also announced a bonus of Rs 50.

Following the drop in the sales of flour, big flour millers are not buying fresh and have also cut back production to maintain prices, said a wheat trader, Mr Subhash Chander. Around 600 quintals of dara variety arrived from Uttar Pradesh but the quality of the stock was not good and hence, there were no buyers , he added.

There are hardly any buyers even though prices have fallen below the support price, said Mr Chander. The Dara variety has dropped by Rs 30 a quintal during this week.

On the other hand, low stocks pushed desi wheat varieties up. Tohfa variety rose by Rs15 and quoted at Rs 2, 140 a quintal, Maruti increased by Rs 20 and sold at Rs1, 800 a quintal, Lal Quila was at Rs1, 950-2,000 while Kangan sold at Rs 2,005 a quintal. Due to uncertain weather, traders are not placing new orders of desi wheat, said Mr Chander .

Flour Prices

Despite a fall in wheat, flour prices were unchanged and quoted at Rs1, 160 for a 90-kg bag. After witnessing a drop earlier this week, Chokar recovered a little and increased by Rs 10 and sold at Rs 490 for a 49-kg bag.

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