Wheat Prices Skyrocket In MP

In Madhya Pradesh, despite acute power shortage and fertiliser crisis, a hike in minimum support prices has led to a surge in wheat prices. The Madhya Pradesh government has directed its agencies to procure an additional 50,000 metric tonnes of wheat this year. Private players, including ITC, Cargill, Hind Lever and others procured 500,000 quintals roughly, according to the sources. Even though the state government has not embarked on supplementary wheat procurement through its agencies - Madhya Pradesh Civil Supplies Corporation and Madhya Pradesh State Cooperative Marketing Federation, -a good response to "Lok-1" variety has been reported in Vidisha, Sehore and Ashta mandis while Bhopal mandi has reportedly received a lukewarm response with a minimum of 2,000-3,000 quintals during the last one week. Lok-1 wheat prices were hovering at Rs 750-1,425 a quintal. The prices are likely to go up further since private sector atta makers are waiting for arrival of Sharbati variety of wheat which is rich in protein. Sharbati arrivals will begin at the end of this month or first week of April. Although all districts of the state grow wheat Ashta, Ganjbasoda, Indore, Dewas, Guna, Ashoknagar, Sehore, Vidisha and some parts of Raisen and Sagar districts are know for the high quality Sharbati wheat. The prices normally start from Rs 1400 per quintal even in open market and cross Rs 2000 per quintal. Last week prices of Sharbati variety prices touched a maximum of Rs 2210. During January this year the state government had admitted a fall in wheat production by 5-15 per cent from the targeted 90 lakh tonnes from 44 lakh hectare acreage.