Trade sources said that the Multi-National Companies (MNCs) and big corporations have a tendency to stock wheat for the entire year.
Although the new crop will start arriving in the market from April first week in small quantities, the volumes are expected to increase after mid-April after the festival of Baisakhi. The state governments of Rajasthan and Madhya Pradesh have announced to pay a bonus of ₹125/quintal over the MSP of ₹2275/quintal. "Wheat will be expensive in Madhya Pradesh and Rajasthan due to the bonus, while it has always been expensive in Punjab and Haryana due to the local mandi taxes," said a wheat processor.
Uttar Pradesh has been the most preferred origin of wheat with the wheat industry as wheat is often available the cheapest here.
"The FCI's procurement has been traditionally low in UP, while the farmers often resort to distress sale, which can make wheat available at lower than the MSP," said another wheat miller, who did not want to be identified.
