Wheat prices have dropped sharply from their peak in the middle of January since the Food Corporation of India (FCI) started liquidating its inventories through the Open Market Sale Scheme from February 1.
Between February 1 and February 20, data from private traders shows that wheat prices dropped 7-20 per cent at different mandis where active trading took place, while the drop, when compared with mid-January rates, is about 30 per cent.
Going forward, prices will depend on wheat crop production following the sudden sharp increase in temperature across several parts of North and Central India. Officially, though, the Centre in its second advance estimates, had pegged wheat production in the 2023-24 marketing year at an all-time high of 112.18 million tonnes, up 4.12 per cent from last year on the back of a sharp increase in acreage.
However, much will depend on the temperature in North India from hereon.