Wheat prices fall below MSP of Rs 1,735 on fresh arrivals and weak quality

Wheat prices have fallen below the minimum support price of Rs 1,735. Prices started falling from the second half of March as new crop started arriving from Madhya Pradesh, Rajasthan and Gujarat, aong other states. Early crop was damaged due to late-season hailstorms a month ago and small farmers has also started selling in market without waiting for procurement. In last two weeks, prices in producing mandis have fallen 6-8 per cent on average.

It may be pertinent to note that oilseeds, pulses and even cotton in some areas are trading below their MSP, and wheat, the largest crop after paddy, has joined the list.

The quality of wheat from MP is usually better than that from North India, and the state government in that state has announced a bonus of Rs 265 per quintal above MSP.

At present average-quality wheat in the Saurashtra markets is priced at Rs 1,550 per quintal, while in the MP and Maharashtra mandis it is selling ar around Rs 1,650.