The recent surge in wheat prices has had a profound impact, not only on the market but also on the everyday kitchen of the common man. This increase has led to a significant rise in the prices of wheat-based products like flour, bread, and biscuits. Flour prices have now reached their highest point in 15 years, becoming a matter of concern for both consumers and the government.
Currently, the wholesale price of wheat is running 23% higher than the Minimum Support Price (MSP). This means that farmers and traders are making significant profits from selling wheat, but it is putting a heavy strain on consumers' pockets. According to the government commodity index Agmarknet, on December 24th, the wholesale price of wheat in the Urla wholesale market of Jalaun district in Uttar Pradesh was ₹2900 per quintal, almost 23% higher than the MSP of ₹2300. Similarly, the wholesale minimum price of wheat in the Amaravati mandi of Maharashtra was ₹2800 per quintal, and in the Alwar mandi of Rajasthan, it was ₹2810 per quintal.
Flour prices have reached their highest levels ever. In December, the price of flour soared to ₹40 per kilogram, the highest since January 2009. This marks the first time in 15 years that such a sharp increase in flour prices has been observed. As a result, the prices of staples like roti, paratha, and other wheat-based food items have increased significantly.
The government has taken several steps to control rising prices. The Food Corporation of India (FCI) released 1 lakh tons of wheat into the market through e-auctions to increase availability. Additionally, stock limits for millers were reduced to curb hoarding. However, despite these efforts, wheat prices have not shown any significant decline.
Imbalance Between Demand and Supply:
Experts believe that the primary cause of rising wheat prices is the imbalance between demand and supply. While sowing for the rabi season has increased, the crops will take time to reach the market. Meanwhile, hoarding and black market activities are further inflating prices.
Will High Prices Persist Until March?
According to experts, wheat prices are likely to remain under pressure until March. However, after March, the release of stocks by farmers and the arrival of the new crop in the market may improve the situation. This year, wheat was sown over 293.11 lakh hectares, which is 9 lakh hectares more than last year, leading to expectations of better production.
Challenges in Tackling Inflation:
Controlling inflation is proving to be a major challenge for the government. The rise in the prices of flour and wheat-based products is directly affecting middle and lower-income families. A long-term policy is required to restore balance to the market and curb inflation.
Conclusion: The rising prices of wheat and flour have become a major concern for everyday consumers. The government needs to not only take immediate measures but also find long-term solutions. Strict action against hoarding, increasing production, and strengthening supply chains are essential to provide relief to consumers.
