Wheat prices up on exporter demand

Wheat prices in Saurashtra have risen by Rs 30-40 per quintal owing to the surge in demand from exporters.

Exporters are reported to have purchased 10,000 tonne of wheat from the local markets at about Rs 7600 per tonne. There are also export orders for about 12000 tonne on hand. With demand for good quality wheat from Dubai, prices have risen to Rs 135-140 per 20 kg.

To meet with the heavy demand for wheat abroad, exporters have started procuring grain directly from growers. This has led to a reduction in grain supplies to the Saurashtra market by close to six thousand bags per day.

On an average, close to 20 thousand bags of wheat arrive at the Rajkot marketing yard per day. Around 90 thousand bags reach marketing yards in the entire Saurashtra region, said Bhikhalal Patel, a wholesale dealer in Rajkot.

In the whole of India, production of the Rabi crop has increased this year. The country produced 582 crore tonne wheat in the previous year and this is expected to rise to 730 crore tonne this year.

"The wheat crop is expected to be two or three times the average output and this should help stabilise prices," said H V Vadodaria, secretary, Rajkot Marketing Yard.

Market sources said exporters from Ahmedabad, Delhi, Indore and Mumbai are also planning to buy wheat from Saurashtra.