Rising wheat prices also have a subsidy aspect, thanks to open market sales

Wheat prices have once again soared to almost Rs 3,300 per quintal in Delhi markets after a temporary drop in November. The November drop was largely due to pressure of open market sales by the Food Corporation of India (FCI). 

 

According to traders, the price spike this time could last a little longer as the Centre’s ability to intervene in the market through open market sales might get squeezed due to dwindling stocks. Also, wheat MSP, coupled with bonuses by several north Indian states, has ensured that the cost of purchasing wheat is higher, which in turn is contributing to