Source: Business Standard
The average price in mandis moved from Rs.1,635 a quintal in September to Rs.1,694 in October, and then shooting up to Rs.2,036 in November and down to Rs.1,847 in December. In January, it has averaged Rs.1,742 a quintal. There are various factors impacting this movement. The price rise came despite large stocks from two consecutive years of extremely good harvests and high expectations for the rabi crop. Sowing was slightly delayed at the beginning of the season but picked up over the month of November. One of the reasons for the high prices was the record minimum support price (MSP) set at Rs.1,400 a quintal
for this year's harvest. There have also been considerable pressures from global demand, as Indian tenders attracted prices higher than the base price. Yet, the spike was short-lived, as good crop expectations from the US, Brazil and a bumper crop in India have caused a crashing of prices in global markets in January. Domestic prices are still expected to be stable, as India looks to export its record wheat stocks.
IPM data till week ending January 25. The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of the IPM differ from the corresponding Wholesale Price Index. However,broad trends are in sync.