India wheat prices rise amid tight supplies

Published 2025년 1월 9일

Tridge summary

India's flour mills are facing challenges in securing sufficient wheat to operate at full capacity due to limited supplies and record-high prices. The Indian government has implemented restrictions on the amount of wheat stocks that traders and millers can hold in an effort to increase availability and control prices, but these measures have not succeeded in reducing prices. Wheat prices have surged to around 33,000 rupees per tonne in New Delhi, more than double the government's minimum support price. The USDA's Foreign Agricultural Service reports that India's government wheat stocks, as of October 1, were approximately 23.8 million tons, a decrease from 24 million tons the previous year. It is anticipated that the government will need to sell more wheat from its reserves to wholesale consumers due to the high price levels and limited supply.

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Original content

India’s flour mills are struggling to secure enough wheat to operate at full capacity and meet strong demand amid tight supplies and record high prices for the grain, Reuters reported, citing industry sources. In December, the government lowered the limit on wheat stocks that traders and millers can hold in a bid to boost availability of the grain and contain prices. The restrictions have failed to bring down prices, which stood at around 33,000 rupees ($384.66) a tonne in New Delhi, up from 24,500 rupees in April and well above the government’s minimum support price of 22,750 rupees for last season’s crop. “There is a tight supply of wheat in the market,” Ajay Goyal, managing director of Shivaji Roller Flour Mills, told Reuters. “Even after paying record prices, millers are unable to secure enough wheat to operate at full capacity.” The government initially imposed wheat stock limits in June for retailers, wholesalers, traders and processors until March 31, 2025, to prevent wheat ...

Source: Oilworld