Wheat steady, maize weakens as rice demand remains tepid

Government procurement supports cereal markets while weak exports and fresh arrivals pressure select agricultural commodities

Commodity Desk

MUMBAI

Grain prices remained largely steady across major spot markets on Monday, with traders expecting wheat prices to stay range-bound due to strong government procurement and limited market demand.

  Meanwhile, maize prices may face pressure from rising arrivals of the summer crop, while select basmati rice varieties could decline amid sluggish export demand.

 Wheat prices in Indore rose by ₹20 to ₹2,600 per 100 kg compared to Friday, supported by the Centre’s aggressive procurement drive. Traders said demand remained muted despite stable prices, as supply in the market continues to remain ample. 

 The government is actively purchasing wheat to replenish foodgrain stocks before procurement deadlines ending May 31 in several states, while Gujarat has extended purchases until June 15.

  Market participants expect wheat procurement to surpass last year’s levels, with the government aiming to achieve its target of 34 million tonnes.  In Navi Mumbai’s Vashi market, wheat prices remained unchanged at ₹2,700 per 100 kg amid weak trading activity and abundant carryover stocks held by traders, stockists and government agencies. Maize prices in Indore were steady at ₹2,080 per 100 kg as demand remained stable. However, traders expect prices to soften in the coming weeks due to increasing arrivals of the fresh summer crop. 

Despite this, fears of reduced kharif acreage due to expectations of a below-normal monsoon may limit a sharp decline in prices. In Karnataka’s Davanagere market, maize prices ruled steady at ₹1,800-₹2,050 per 100 kg, although arrivals declined by 700 bags.In the rice segment, prices of major basmati varieties remained unchanged in Vashi due to subdued market activity. 

Traders said export demand from West Asia remained weak amid ongoing geopolitical tensions in the region. Prices of 1401 and 1509 basmati varieties are expected to decline by ₹500-₹700 per 100 kg in the near term, while the 1121 variety may remain stable because of limited supplies.

(With inputs  from Informist)