Punjab Wheat Prices Reach Record Highs Amid Severe Shortage
The wheat market in Punjab is experiencing a severe shortage, leading to record-high prices. Wheat harvesting is still three months away, but the state's production is being outpaced by demand, pushing prices up to ₹3,500 per quintal.
This has led to a corresponding increase in flour prices, which have risen from ₹2,650 per quintal last May to ₹3,600 per quintal currently. The Food Corporation of India (FCI) conducted an Open Market Sale Scheme (OMSS) auction, where the average price reached ₹3,100 per quintal, with one lot selling at ₹3,500.
Punjab Flour Mills Association president Naresh Ghai noted that government agencies have been purchasing over 95% of wheat arrivals in Punjab mandis, leaving little for the processing industry. As a result, the FCI has started offloading its stocks from December onwards, offering 14,000 MT every week through competitive bidding.