Due to the ban on export, the price of wheat fell by Rs 200 a quintal in the mandis of Haryana, yet more than the MSP

Wheat Price in Haryana: After the ban on the export of wheat by the central government, its price has declined in the mandis of Haryana. There has been a decrease of 200 per quintal in the price of wheat being sold in the state at a rate higher than the MSP. Despite this, its price is higher than the MSP.

Traders were buying wheat in the mandis at the rate of Rs 2300 per quintal more than the fixed MSP of Rs 2015

In fact, on May 14, the central government banned its export to control the price of wheat, which has become costlier by about three hundred rupees per quintal from the Minimum Support Price (MSP). This had an immediate effect on Haryana and the price of wheat has fallen by about two hundred rupees. Due to the increase in the demand for Indian wheat in the international market due to the Russo-Ukraine war, the prices of wheat in the country had jumped, which was affecting the consumers of the country.

This time the government had fixed the rate of MSP for the purchase of wheat at Rs 2015 per quintal. Government agencies procured wheat on MSP only from April 1 to 16. After this, traders bought wheat up to Rs 2300 per quintal in the mandis in the greed for additional income by selling wheat to the exporters. The reason was that at Kandla Port in Gujarat, the exporting companies were buying their wheat at the rate of Rs 2,700 per quintal with a freight rate of Rs 215 per quintal.

Traders from Delhi, Haryana, Rajasthan, Madhya Pradesh, and Uttar Pradesh started leaving for Kandla Port after buying wheat from their areas. When at least two to five traders from the mandis of all the states started doing this, the farmers thronged to give them their wheat. Due to this, the procurement done by the government on MSP came to a standstill.

On the other hand, seeing the rising prices, the prosperous farmers also stored their wheat and refrained from selling it at MSP. Although the government is concerned about such farmers and when the prices of wheat are falling after the ban on the export of wheat, the government has given them relief. Farmers who have stored their wheat and did not sell MSP to government agencies due to greed from traders can now sell wheat to government agencies at MSP till May 31. For this, agencies have reached the mandis.

Let us inform you that 85 lakh metric tonnes of wheat were to be procured in Haryana this year, but only 45 lakh metric tonnes of wheat have been procured so far due to high prices from the traders. In Rajasthan, Punjab, and Uttar Pradesh also, the procurement of wheat at MSP has come down.

Wheat can be cheaper now

After the ban, the wheat of traders engaged in the game of export is stuck at Kandla Port. The brokers of exporters who were earlier calling Kandla port with wheat trucks by making verbal deals with traders have now disappeared. In such a situation, traders trapped in Kandla Port are keeping their wheat in rented godowns around Gandhidham. Some traders are thinking of bringing back wheat.

These traders say that if the central government continues to ban exports for a month or two, then the price of wheat in the mandis may reach cheaper than the MSP, because the government will buy wheat at MSP only till May 31. After this, whoever has wheat will be forced to sell wheat at a cheaper rate than the MSP.

Also Read: China supported India: Wheat prices increased due to the ban on exports, a sharp jump in wheat prices in the international market