Experts Explain: Why are wheat prices surging?
Globally, wheat prices surged nearly 20 percent in April. In India, the government says it has procured 70 percent more wheat year-on-year. Slating it a "protein rally", Ajay Goyal, Director of Shivaji Flour Mills said, “Because corn prices are moving up, and other soft commodities are moving up, wheat is just playing up in tandem."
The prices of soft commodities are going up. From sugar, tea, coffee to wheat and corn, all of these commodities are trading at multi-year highs in the international market. This impact is filtering in Indian markets as well.
Globally, wheat prices surged nearly 20 percent in April. In India, the government says it has procured 70 percent more wheat year-on-year. Slating it a "protein rally", Ajay Goyal, Director of Shivaji Flour Mills said, “Because corn prices are moving up, and other soft commodities are moving up, wheat is just playing up in tandem."
As far as national procurement is concerned, "Only Madhya Pradesh is a disappointment, where the yield is assumed to be low this year."
"We are in a situation wherein most of the metros are under a sort of lockdown so demand is very tepid and supply continues to be okay as far as government is concerned," he added.
For the interview, watch the accompanying video.
(Edited by : Yashi Gupta)
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