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Flour prices may decline with pick-up in wheat supplies

Flour prices may decline with pick-up in wheat supplies
PTI
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First Published: Tue, Mar 27 2007. 01 03 AM IST
Updated: Tue, Mar 27 2007. 01 03 AM IST
New Delhi: Retail prices of wheat flour, that have eased by Rs2 per kg in the last 15 days, are likely to fall by another rupee in the next one month with the increase in the supply of wheat to the domestic market, traders said.
“The retail prices of atta (wheatflour) depend on wheat prices, which fluctuate on the basis of supply,” leading food product manufacturer Rajdhani group’s director Rakesh Jain said, adding that prices could come down by Rs100 per quintal by next month.
“Wheat prices, which are ruling at Rs1,050 per quintal in Delhi today, could dip to Rs950 per quintal by April depending on supply,” he said.
Echoing similar views, another leading wheatflour manufacturer Shakti Bhog’s director Sidharth Kumar said: “Prices have already come down in the last three months.” Kumar said his company has launched an offer with every 10kg pack of atta instead of reducing the price. However, Rajdhani has reduced the price of its 10kg bag.
Roller Flour Millers Federation of India secretary Veena Sharma said wheat prices are unlikely to dip below Rs980 per quintal. “The retail prices of wheatflour (non-packaged) would ease to Rs12 per kg from the current Rs13 per kg in April,” she said.
Jain said the increase in the wheat support price with bonus announcements are not going to increase the prices of the foodgrains in the near future as supply would be more from 10 April onward after the Rabi harvest commences.
Meanwhile, wheat futures have increased by up to 6% in the last 10 days following the announcement of Rs100 per quintal bonus over and above the minimum support price.
The April delivery of wheat at leading agri-commodity exchange NCDEX jumped by 6% to Rs1,024 per quintal compared to Rs966 per quintal on 16 March when the bonus was announced in Parliament.
The May, June and July contracts at NCDEX also increased in the range of Rs4-25 per quintal in the last 10 days of futures trading.
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First Published: Tue, Mar 27 2007. 01 03 AM IST
More Topics: Money Matters | Commodities |