Wheat Prices in India Soar to Record Highs, Adding to Inflation Woes

Wheat prices in India have reached an all-time high. This year, wheat prices have reached Rs 30,000 per ton, which was Rs 24,500 in April. These prices are much higher than the government support price (Rs 22,750). These increased prices can increase difficulties for the common people, as inflation can increase further.

The supply of wheat has decreased in the market and traders and mill owners are not ready to sell it at cheap prices. Wheat production in India is not the same every year, and this time due to low supply, prices have increased drastically.

The Government of India had planned in July to bring wheat stock to the market, but it has been delayed. Last year, the government sold a record 10 million tons of wheat stock in the market, which could control the prices. This time, the government has deferred the plan to release wheat stock, and traders are hoping that it will be released soon so that prices can be stabilized.

This increase in wheat prices can further increase the already high inflation in India. Retail inflation reached a 14-month high in October, mainly due to a rise in vegetable prices. The increased wheat prices may also affect expectations of interest rate cuts by the Reserve Bank next month.

Wheat stocks in India stood at 22.3 million tons in government warehouses at the beginning of November, slightly higher than last year's 21.9 million tons, but much lower than the 5-year average of 32.5 million tons. If the government does not release the stock in time, wheat prices may rise further, causing more inflation for the common man.

It is worth noting that the rising prices of wheat have affected the Indian market. If the government does not release the stock soon, then inflation may increase further, which will affect the country's economy and the pockets of common people.