Wheat flour supply dips, prices increase
Retail prices of wheat flour (atta) have jumped 17% in the past year due to a shortage of the staple in open markets, millers said, urging the government to release grains from its own reserves. Lower supplies have led wheat flour price — at an all-India daily average retail price of ₹36.98 a kg — to almost equal that of rice, which stands at ₹37.96 per kg, according to official data. “The rates have increased because this year, the government has not offloaded any wheat through open market sale,” said Rakesh Anand of the Roller Flour Mills Association.
NEW DELHI: Retail prices of wheat flour (atta) have jumped 17% in the past one year due to a shortage of the staple in open markets, millers have said, urging the government to release grains from its own reserves.
Lower supplies have led wheat flour price — at an all-India daily average retail price of ₹36.98 a kg — to almost equal that of rice, which stands at ₹37.96 per kg, according to data from the consumer affairs ministry.
“The main reason behind the rise of wheat flour prices is the increase in wheat prices. The rates have increased because this year, the government has not offloaded any wheat through open market sale,” said Rakesh Anand of the Roller Flour Mills Association. The government releases grains from federally held stocks of the Food Corporation of India through a scheme called open market sales scheme (OMSS). This year, the government has not offloaded any wheat into private markets through the OMSS because of its tight stock position. “Due to this, wheat prices in north India soared to ₹2,900 a quintal (100 kgs), while the minimum support price stands at ₹2,125 a quintal,” said Binod Johar, a trader in Punjab’s Khanna mandi (farm-gate market). “The government is regularly monitoring prices of essential items. Wheat prices are above MSP currently. This has benefited farmers. Compared to last month, there is a marginal increase in retail and wholesale prices of wheat,” food secretary Sanjeev Chopra said on November 23. A severe heatwave in March had crimped India’s wheat output by 3 million tonnes to 106 million tonne.