Wheat rises after govt purchase ends

Wheat prices in Punjab have firmed up by Rs 40-45 a quintal in the last two weeks as local flour mills have stepped up buying after government procurement in the state ended on June 15.

"The prices have touched Rs 895 a quintal because of extra purchases by local flour mills for their own consumption," a leading local wheat trader Raj Sood said.

While buying is expected to gain momentum in the coming weeks, wheat traders said prices at mandis in Punjab were not likely to cross Rs 910 a quintal level. However, prices may go up by Rs 10 more in the next 20-25 days due to continuous buying by flour mills, they said.

Bhartiya Kisan Union General Secretary Bhupinder Singh said wheat prices might touch Rs 1,000-1,050 a quintal in the coming months on the back of strong demand for the foodgrain.

The Centre stopped wheat procurement in Punjab and Haryana from June 16 as the season ended in these two major growing states. The government was paying Rs 850 a quintal that included Rs 100 bonus over and above the minimum support price (MSP) of Rs 750.

This means any procurement, if needed, would have to be at the MSP level only unless the government decides to extend the bonus again. Procurement with bonus was extended by 15 days after it expired on May 31.