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Wheat prices doubled MSP in November, prompting the government to release stocks through auctions to control rising costs.
The price of wheat has surged significantly, causing concerns among the public and the government. In November 2024, wheat prices in the open market doubled the minimum support price (MSP) set by the government. To control this sharp rise, the government is implementing measures to stabilize prices and provide relief to consumers.
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Throughout November, wheat prices steadily increased across various states. On November 20, 2024, the highest wholesale price in Delhi, Uttar Pradesh, Gujarat, and Goa reached ₹5,800 per quintal—more than double the MSP of ₹2,275 per quintal.
The government had recently increased the MSP for wheat to ₹2,425 per quintal for the upcoming 2025–26 season to support farmers.
To stabilize wheat prices, the Food Corporation of India (FCI) plans to release 25 lakh metric tonnes of wheat into the open market through e-auctions under the Open Market Sale Scheme (OMSS).
As of October 31, 2024, FCI has 222.64 lakh metric tonnes of wheat in its buffer stock, exceeding the required standard of 205.20 lakh metric tonnes. After releasing 25 lakh metric tonnes, over 197 lakh metric tonnes will still remain in storage.
Here is a snapshot of wheat prices in key states as of November 2024:
State | Average Price (₹/quintal) | Highest Price (₹/quintal) |
Maharashtra | 2,897.2 | 6,000 |
Gujarat | 2,884.5 | 3,260 |
Uttar Pradesh | 2,747.51 | 2,950 |
Rajasthan | 2,745.75 | 2,830 |
Madhya Pradesh | 2,720 | 2,740 |
Delhi | 2,987.5 | 3,100 |
Bihar | 2,900 | 3,000 |
Karnataka | 3,533.33 | 4,200 |
West Bengal | 2,600 | 3,300 |
The rising wheat prices are a double-edged sword. While higher prices benefit farmers, they increase the burden on consumers due to costlier wheat-based products. The government’s intervention aims to strike a balance between supporting farmers and protecting consumers.
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The government’s decision to release wheat stocks and regulate prices through the OMSS is a critical step in addressing inflationary pressures. The impact of these measures on the market will determine whether the prices stabilize and bring relief to consumers.