In Food Corporation of India’s (FCI’s) weekly auction on Thursday, wheat fetched Rs 2,100 per quintal, which will expectedly lead to a jump in the price of flour by up to Rs 2 a kilo in Punjab in the coming days. The flour rate has already witnessed a jump of Rs 4 per kilo in the past fortnight.
A month ago, wheat price was about Rs 1,640 per quintal. The sudden jump in price is being seen due to the demand-supply gap and may lead to further increase in the flour prices in the coming days. The average price of wheat auctioned on Thursday was Rs 1,980 a quintal.
Of the 14,000 tonne of wheat put for auction by the FCI, Punjab traders could only buy 5,000 tonne against their weekly demand of 20,000 tonne. In the past, unlimited quantity of wheat was being offered by the FCI, which, in the two preceding weeks, was limited to 60,000 tonne a fortnight ago and further curtailed to 27,000 tonne last week.
“The government agencies have to act, otherwise the wheat processing industry and consumers will suffer,” said wheat processors’ association, Punjab, president Naresh Ghai.