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Mint
28-05-2025
- Business
- Mint
Centre brings back stock limits on wheat to ensure stable prices ahead of key state polls
New Delhi: The Centre has reimposed stock limits on wheat across the country until 31 March 2026 to prevent hoarding and stabilize prices amid concerns of tightening domestic supplies. The fresh directive by the ministry of consumer affairs, food and public distribution under the Essential Commodities Act, 1955, sets specific ceilings on wheat stocks that can be held by traders, retailers, large retail chains, and processors, according to a government notification. The government had decided against allowing wheat exports amid fears of a price surge ahead of upcoming festivals and state assembly elections, Mint reported on 21 May. With assembly elections due in Bihar, Assam, Kerala, Tamil Nadu, West Bengal, and Puducherry, prices of staples like atta (wheat flour), maida (refined flour), and suji (semolina) have become a political priority. The government's wheat purchase from the farmers in the 2025–26 rabi marketing season (April–June) has crossed 29.81 million tonnes (MT) till 27 May, highest since the 2021-22 season, according to official data. However, the procurement for the central pool this year has fallen short of targets due to erratic weather and lower arrivals in key producing states. Traders and wholesalers will be allowed to stock a maximum of 3,000 metric tonnes (MT) of wheat, while individual retailers can hold up to 10 MT at each outlet, according to the government's 27 May order. Big chains will be permitted to stock 10 MT per outlet, subject to a cumulative ceiling based on the total number of outlets. For processors, the limit has been set at 70% of their monthly installed capacity (MIC), multiplied by the remaining months in the current financial year. These limits are applicable across all states and union territories with immediate effect. "With the current notification, there would be increase in supply in the market. We expect correction in the prices of wheat from ₹ 50-100 per quintal,'said Navneet Chitlangia, president, Roller Flour Millers Federation of India. All stakeholders covered under the revised order are required to declare their existing wheat stocks on the government portal. Entities holding wheat stocks above the prescribed thresholds must bring them down within 15 days of the notification, it said. Government officials said that the aim is to enhance transparency in stockholding and discourage speculative buying that may distort prices. 'It shall be ensured that wheat stock is regularly declared and updated on the portal of this Department,' the order stated. The imposition of stock limits is the latest in a series of steps taken by the Centre over the past year to curb food inflation, including bans or restrictions on exports of wheat, rice, and onions, as well as measures to improve market transparency and augment buffer stocks. As of Wednesday, the consumer affairs ministry data showed, the retail price of wheat rose to ₹ 31.24 per kg from ₹ 30.65 per kg a year earlier, while wheat flour (atta) was selling at ₹ 36.71 per kg, up from ₹ 35.87 per kg during the same period last year.
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Business Standard
22-05-2025
- Business
- Business Standard
India set for record wheat harvest after favourable weather boosts yield
India's wheat output, which was threatened by the second-warmest February in over a century, is likely to be a bumper one this year as favorable weather during the crucial grain-filling stage improved yields. The world's second-biggest grower is set for a record harvest as climatic conditions were good, and there were no reports of any major damage due to hailstorms or crop diseases, said Ratan Tiwari, director of state-run Indian Institute of Wheat and Barley Research. The increased use of climate-resilient, high-yielding seeds further helped in improving productivity, he said. The brighter crop prospect is prompting flour millers to ask the government to lift a ban on exports of wheat products, said Navneet Chitlangia, president of the Roller Flour Millers' Federation of India. It's a change in their stance just weeks after the group sought a cut in import tax due to output concerns. 'Government granaries are full, while private trade has enough stocks,' Chitlangia said, adding that harvesting of the staple is in its last leg across the country. The government should allow exports of wheat products, he said. India's production is expected to hit a record 117 million tons, the US Department of Agriculture forecasts. That would help lift its end-of-season stockpiles to a four-year high, it said. Higher production in India may potentially put pressure on global wheat prices, which have risen almost 3 per cent so far this month. That would also help in a further reduction in the country's food inflation. The South Asian nation banned overseas sales of the grain in 2022 after the hottest March in more than a century that year parched fields and crimped output. In contrast, average temperatures in key growing areas this year were not too harsh for wheat plants, Tiwari said. After the completion of wheat purchases by government agencies, the food ministry will assess the country's requirements and discuss with other departments to examine the possibility of allowing exports, Food Minister Pralhad Joshi told reporters on Tuesday. State-run Food Corp. of India has bought 29.6 million tons of wheat as of May 19 for the government's welfare programs, about 14 per cent higher than a year earlier. Total procurement from this year's crop may climb 22 per cent to 32.5 million tons, Joshi said. The farm ministry estimated in March that production will rise to an all-time high of 115.43 million tons in 2024-25. The market participants were not convinced about the accuracy of the prediction as the crop was still at an early stage and weather was fluctuating. However, most of the growing areas didn't witness any adverse weather, such as heavy rain or abnormal temperatures.
Time of India
22-05-2025
- Business
- Time of India
India wheat crop seen hitting record, allaying import fears
India's wheat output, which was threatened by the second-warmest February in over a century, is likely to be a bumper one this year as favorable weather during the crucial grain-filling stage improved yields. The world's second-biggest grower is set for a record harvest as climatic conditions were good, and there were no reports of any major damage due to hailstorms or crop diseases, said Ratan Tiwari, director of state-run Indian Institute of Wheat and Barley Research. The increased use of climate-resilient, high-yielding seeds further helped in improving productivity, he said. The brighter crop prospect is prompting flour millers to ask the government to lift a ban on exports of wheat products, said Navneet Chitlangia , president of the Roller Flour Millers' Federation of India . It's a change in their stance just weeks after the group sought a cut in import tax due to output concerns. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Windows Users Don't Forget To Do This Before Thursday Read More Undo 'Government granaries are full, while private trade has enough stocks,' Chitlangia said, adding that harvesting of the staple is in its last leg across the country. The government should allow exports of wheat products, he said. India's production is expected to hit a record 117 million tons, the US Department of Agriculture forecasts. That would help lift its end-of-season stockpiles to a four-year high, it said. Live Events Higher production in India may potentially put pressure on global wheat prices, which have risen almost 3% so far this month. That would also help in a further reduction in the country's food inflation. The South Asian nation banned overseas sales of the grain in 2022 after the hottest March in more than a century that year parched fields and crimped output. In contrast, average temperatures in key growing areas this year were not too harsh for wheat plants, Tiwari said. After the completion of wheat purchases by government agencies, the food ministry will assess the country's requirements and discuss with other departments to examine the possibility of allowing exports, Food Minister Pralhad Joshi told reporters on Tuesday. State-run Food Corp. of India has bought 29.6 million tons of wheat as of May 19 for the government's welfare programs, about 14% higher than a year earlier. Total procurement from this year's crop may climb 22% to 32.5 million tons, Joshi said. The farm ministry estimated in March that production will rise to an all-time high of 115.43 million tons in 2024-25. The market participants were not convinced about the accuracy of the prediction as the crop was still at an early stage and weather was fluctuating. However, most of the growing areas didn't witness any adverse weather, such as heavy rain or abnormal temperatures.
Mint
28-04-2025
- Business
- Mint
As harvest picks up pace, wheat flour prices fall by ₹5-7 per kg, offering relief to consumers
New Delhi: The fresh arrival of wheat from key producing states—Punjab, Haryana, Madhya Pradesh, Uttar Pradesh, Rajasthan and Gujarat—is beginning to ease the pressure on household budgets, with wheat flour (atta) prices declining sharply by ₹ 5-7 per kg over the past month. The softening of prices, as per industry people, could not have come at a better time as policymakers intensify efforts to rein in food inflation. Unbranded atta has seen the most visible price decline, while several branded atta players have reduced prices by ₹ 1.5- ₹ 5 per kg. However, distributors say it may take a few more weeks for these cuts to fully reflect on retail shelves. Wholesale atta prices have also corrected significantly, falling to ₹ 2,900- ₹ 3,000 per quintal in Delhi from ₹ 3,600- ₹ 3,700 a month ago. Navneet Chitlangia, president of the Roller Flour Millers' Federation of India (RFMFI), attributed the price decline to the robust pace of harvesting. "The benefits of the new crop are beginning to flow to consumers. We expect the trend to continue as arrivals strengthen further," he said. The government procurement has gathered momentum. Between 15 March, when procurement began, and 24 April, government agencies had purchased over 19.85 million tonnes (mt) of wheat, up 46% from 13.85 mt procured during the same period last year. For the 2025-26 marketing season, the government is targeting a wheat procurement of 31.2mt, compared to 26.6mt bought in 2024-25. According to the agriculture ministry, wheat production during the 2024-25 rabi season is estimated to reach a record 115.43mt, surpassing the 113.29mt harvested last year. Experts attribute the bumper harvest to conducive weather conditions and the absence of major crop-damaging events this season. In the Delhi wholesale market, wheat is currently trading between ₹ 2,600 and ₹ 2,700 per quintal, compared to ₹ 3,300 a month ago—a substantial correction that analysts believe will provide vital relief to the broader inflation outlook. Retail inflation slowed to 3.34% in March, with food inflation easing sharply to 2.69% year-on-year from 3.75% in February. Economists see the ongoing wheat harvest and strong procurement efforts as key factors that could further cool prices in the coming months. "With a bumper wheat crop expected and robust procurement, we should see a stable-to-softening trend in food inflation. Wheat prices have a direct impact on staples like flour, bread, and biscuits," said Madan Sabnavis, chief economist at Bank of Baroda. This year's wheat harvest is turning out to be a crucial turning point after months of volatility. Wheat prices had started climbing after mid-December 2024 due to dwindling supplies and strong demand from flour mills. By early February, wheat prices had hit a record high, prompting the government to intervene through the Open Market Sale Scheme (OMSS) and regulatory measures such as stock limits on traders and millers. However, the supply situation only began easing after new crop arrivals began mid-March. Under OMSS, the Food Corporation of India (FCI) offloaded 3mt of wheat starting mid-December in FY25, compared to a record 10mt sold to bulk buyers in FY24. Wheat was offered at ₹ 2,325 per quintal, slightly above the official minimum support price (MSP) of ₹ 2,275 for the 2024-25 marketing year. Despite these interventions, the real relief has come only now with the actual arrival of fresh supplies. Retailers confirm that the fall in prices is currently more pronounced for unbranded atta and chakki atta sold in bulk (10kg or 50kg bags) compared with branded packaged atta. "It takes time for branded players to recalibrate their shelf prices even if procurement costs fall. So far, we haven't seen major changes at the retail level," said Dhairyashil Patil, president, All India Consumer Products Distributors' Federation. Branded wheat flour accounts for only 5-8% of India's 45-50mt annual atta market, meaning that most consumers are likely to benefit relatively faster through loose and unbranded flour purchases. Queries sent to major branded players like ITC Ltd and Adani Agri Business Ltd (formerly Adani Wilmar) remained unanswered. Industry watchers caution that products made from wheat, such as bread and biscuits, may not immediately see price cuts. "The prices of secondary products like bread and biscuits won't necessarily come down in perfect sync with wheat prices," Sabnavis added, pointing to processing and packaging costs that remain elevated. First Published: 28 Apr 2025, 08:37 PM IST
Zawya
09-04-2025
- Business
- Zawya
India's wheat procurement begins strong, signalling robust harvest
India has bought 2.08 million metric tons of new-season wheat from domestic farmers since March 15, up 44.4% from last year, government sources said, indicating a robust crop that will help New Delhi shore up its depleted reserves and avoid imports. The government-backed Food Corporation of India (FCI) has primarily purchased early varieties of wheat from the central state of Madhya Pradesh. FCI's wheat procurement period has gotten off to a strong start and is expected to gather steam in the coming weeks as harvests from bread-basket states such as Haryana, Punjab, and Uttar Pradesh start to trickle into the market. The initial trend of FCI's wheat procurement indicates a strong wheat crop this year, said the sources, who did not wish to be named as they were not authorised to talk to the media. Both harvests and FCI's purchases are expected to be satisfactory this year, they said. "Farmers are getting better prices from the government because Madhya Pradesh is giving them a bonus on top of the minimum support price set by the centre," said a New Delhi-based dealer with a global trade house. India has set a purchase price of 2,425 rupees ($27.98) per 100 kg for wheat bought from farmers. Madhya Pradesh is offering an additional bonus of 175 rupees per 100 kg. Last year, FCI aimed to purchase 30 to 32 million tons, but the state stockpiler procured only 26.6 million tons, indicating a poor harvest. As a result, Indian wheat prices surged to a record high earlier this year. Last month, the government estimated this year's wheat output at a record 115.4 million tons of wheat. "Harvests have just started to arrive and the crop looks quite good in terms of both yields and overall production," said Navneet Chitlangia, president of the Roller Flour Millers Federation of India. ($1 = 86.6820 Indian rupees) (Reporting by Mayank Bhardwaj and Rajendra Jadhav;)
