Shot in the arm for wheat traders as domestic prices hit lifetime high

Riding on a possible supply disruption of foodgrains - especially wheat -- due to the ongoing war in Ukraine, wheat`s prices have hit a record high in India.

Both Russia and Ukraine are major producers of wheat.

In the key market of Madhya Pradesh`s Indore, the foodgrain was sold at Rs 2,400 per quintal against Rs 2,000-2,100 until recently.

"There is a heavy demand from exporters apparently because of the talks that the supply line from Russia and Ukraine may dry up if the tensions persist," said an Indore-based veteran trader.

"Prices typically remain low during this time of the year as freshly harvested rabi crops make their way into the markets. However, the war propped the prices up this time," the trader said.

He sees the wheat prices going up by another Rs 100-200 per quintal in the near term.

In the US market too, wheat futures have risen nearly 50 per cent in the past one month, which in a way is also making Indian wheat attractive for buyers.

India usually produces surplus foodgrains as against its domestic requirements and the fresh export demand comes in as a shot in the arm for the wheat traders.