Indian millers, traders feel the heat of growers holding back wheat as prices rule above MSP

Despite higher production, arrival of the foodgrain is slack in markets

Wheat prices have tended to stay elevated despite harvest and arrivals picking up.

India’s wheat production this year is seen higher than the past two years but farmers holding back their produce expecting higher prices is affecting millers and traders. “Though the Ministry of Agriculture has pegged wheat production at 112.01 million tonnes (mt), we expect it to be 105 mt. This is 5-6 mt higher than our estimates last year,” said an international trading source. 

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