With record production, domestic demand, mainly from South India, and export demand has stabled the market and farmers are getting good price for their commodity.
"This year, good monsoon encouraged farmers of the state for higher sowing of wheat. In addition, it has increased the yield of the crop and as a result, wheat production is likely to be record high in Gujarat," said state agriculture minister Govind Patel.
As per agriculture department's data, wheat production for 2013-14 has been estimated at 4.80 million tonnes as against 2.66 million tonnes in 2012-13.
The yield of wheat has been estimated to be 3,200 kg per hectare for this year. Last year, it was 2,800 kg per hectare.
Wheat was sown in about 1.5 million hectares this year while in last year, it was 950,000 hectares in previous year.
Since February end, arrival of the new crop has started mainly in Saurashtra.
At presently over 1,00,000 bags (a bag of 100 kg) arrives every day in various markets of Gujarat.
According to traders, it will increase to 1,50,000 bags by March end.
In spite of high arrivals in the market, wheat price have risen in March because of demand from South India and exporters.
Nayan Thakkar of Vinayak Industries said, "Demand from South India for mill quality wheat is very good. In addition, export demand is also there in the market."
Exporters are buying for Indonesia, Malaysia, Philippine, United Arab Emirates (UAE) and other gulf countries.
Vinayak Industries has sent about 10,000 tonnes mill quality wheat to South India this month.
Price for South India is ruling between Rs 1,500 per quintal and Rs 1,640 per quintal.
Farmers are getting good price of wheat as demand is good.
During March, wheat prices increased about Rs 25-40 per 20 kg in different APMCs of Gujarat.
Price of Lokwan variety wheat is ruling between Rs 295 per 20 kg and Rs 364 per 20 kg while Tukda wheat price is priced between Rs 297 per 20 kg and Rs 425 per 20 kg.
However, traders said that price will not rise further as arrivals are increasing.
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