Wheat prices drop sharply by up to 20% since FCI’s open sale scheme

Wheat prices have dropped sharply from their peak in the middle of January since the Food Corporation of India (FCI) started liquidating its inventories through the Open Market Sale Scheme from February 1.

Between February 1 and February 20, data from private traders shows that wheat prices dropped 7-20 per cent at different mandis where active trading took place, while the drop, when compared with mid-January rates, is about 30 per cent.

Going forward, prices will depend on wheat crop production following the sudden sharp increase in temperature across several parts of North and Central India. Officially, though, the Centre in its second advance estimates, had pegged wheat production in the 2023-24 marketing year at an all-time high of 112.18 million tonnes, up 4.12 per cent from last year on the back of a sharp increase in acreage.

However, much will depend on the temperature in North India from hereon.

Wheat Prices From the Day Centre Announced OMSS sale (in Rs/quintal)
Centre	1-Feb	10-Feb	18-Feb	20-Feb	% Change*
Delhi*	2880-2925	2680-2700	2280-2300	2350-2400	18%
Rajkot	2500-2800	2500-3000	2500-3000	2000-2800	20%
Indore	2500-2800	2400-2750	2400-3000	2200-2800	12%
Bhopal	2500-2800	NA	2300-2700	2200-2600	7%-12%
Kota	2525-2720	2350-2580	2200-2500	NA	NA
Mathura	2700-2780	2630	2225	2300-2375	14.5%-15%
*Prices of both UP and MP variety and Lawrence Road market in the capital
NOTE: Change is from Feb 1 to Feb 20
Source: iGrain India