Wheat prices have seen a significant rise to cross a record Rs 2,500 per quintal due to slower supplies and robust demand.
According to traders in Delhi, the heat wave led to lower production of wheat this year, impacting the domestic supplies of the agricultural produce.
Jai Prakash Jindal of Delhi Lawrence Road Mandi said that the prices have been going up daily since the last few days.
"Even today the rate went up by Rs 30 and now the price here is Rs 2,550 per quintal. In Haryana, it is Rs 2,400 per quintal, while in Rajasthan the price is Rs 2,370 per quintal," he said.
The mandi prices were hovering around Rs 2,150 to Rs 2,175 per quintal since the ban on wheat export was imposed on May 14, 2022.
Jindal said that production has been on the lower side this year and the government did not stop export at the right time.
"A lot of wheat was already exported by the time the government put a ban on wheat export. It should have been done earlier," he said, adding that import of wheat will be needed to fulfil the festive demands in the upcoming months of October and November.
Government data revealed that wheat export has increased in the last few years. Wheat valued at $2,121.5 million was exported in 2021-22. In the first four months of 2022-23 (April-July), wheat worth over $1,190 million was exported.
The reasons for the increase included various factors like international demand-supply situation, rise in global commodity prices and conflict between major wheat exporting nations like Ukraine and Russia, etc.
Meanwhile, government sources said that the Centre may take a few initiatives to meet the demand and to curb the rising prices of wheat.
It may scrap the 40 per cent import duty on wheat. Besides, it can also impose stock holding limits on wheat and voluntary disclosure of wheat stocks held by stockists and traders.
Officials said that the procurement of wheat has fallen due to higher purchase of wheat by traders as market price of the produce has shot up due to prevailing international geopolitical situations.