Wheat Flour Hits Record High In India. Price May Increase By 10 Percent In 2-3 Months: Report

The fire of inflation has now touched the bread. The restaurant-dhaba people have increased the price of bread. If you go to the Online Food Delivery app, then a Tawa Roti is being available in Delhi for about Rs 26. 

Now bread has become expensive, which means flour and wheat prices are at a higher level. The average retail price of flour in the country in April 2022 was Rs 32.38 per kg. 

There is a further increase in this in the month of May. This is the highest since January 2010. 

Means, at present the price of flour is at a 12-year high. The increase in the prices of flour in the country is because both the production and storage of wheat are decreasing. 

Wheat prices are at a high level across the world at the moment.

Flour is the most expensive in these parts of the country

According to government data, the all-India average retail price of flour stood at Rs 32.78 per kg on May 7. 

This is 9.15 percent more than a year ago. As per the available data of 156 centres, the highest price of wheat flour is Rs 59 per kg in Port Blair. 

At the same time, the cheapest flour is available at Rs 22 per kg in Purulia, West Bengal. 

If we talk about metro cities, then the average price of flour was highest in Mumbai at Rs 49 per kg. 

This was followed by Rs 34 per kg in Chennai, Rs 29 per kg in Kolkata and Rs 27 per kg in Delhi.

Know why flour is getting expensive in India

1. Ukraine is the largest exporter of wheat in the world. Wheat production has fallen drastically due to the current war here. 

Due to this there has been an acute shortage of wheat all over the world. There is also a huge demand for wheat of India from abroad. 

This is the reason why the prices of wheat are increasing and flour has become expensive.

2. The increase in diesel prices is also affecting the prices. With the increase in the price of diesel, the cost for the farmers is increasing and transportation has become expensive. 

This has also led to a rise in the prices of wheat and flour.

3. In the last financial year, India has exported 70 LMT of wheat. India’s wheat exports are likely to remain high in the current financial year as well, due to a reduction in global supplies due to the Russo-Ukraine war.

4. The Central Government expects that a balanced stock of 100 LMT of wheat may be ready during the financial year 2022-23 after the supply of wheat under all welfare schemes. 

However, due to high heat in the month of March, wheat production is expected to be affected. 

According to the officials, the total wheat production may remain below the target. This may lead to further increase in wheat prices.

5. Wheat prices are increasing all over the world. The retail price of wheat in India increased to Rs 28.67 per kg in March 2022. 

It was Rs 27.90 per kg in March 2021. The highest increase in flour prices has been observed in India in April 2022.

However, the government is monitoring the prices. The Central Government is continuously monitoring the domestic prices of wheat along with the ongoing procurement in the current season.

For the first time, Turkey has placed an order to import 50,000 tonnes of wheat to India. This will further increase the price of wheat. It has already increased by up to 15 per cent in recent weeks. 

The demand for Indian wheat is increasing due to the disruption in the supply of wheat across the world. However, it will benefit the farmers of India. Let us tell you that Ukraine produces about one fifth of the world’s high grade wheat and 7% of the total wheat. 

A large quantity of wheat procured from farmers by private traders in India is priced above the minimum support price (MSP), as the Russo-Ukraine war has pushed up international prices. 

Traders are building up inventory in anticipation of good export orders from global markets.

Price may increase by 10 percent in 2-3 months

The country’s flour industry is deeply concerned and its leaders will hold talks with the Food Secretary this week. 

They say that if the government does not take any steps on the rapid export, then the prices of flour will increase by 10 percent in the next 2-3 months. 

Heavy purchases by private traders, heavy exports and stockpiling by farmers may affect the availability of wheat. 

However, millers are unable to decide to stock more in the coming times due to rising prices. 

They fear that the government may impose a cap on the stock of flour, like pulses and oil, to control prices.

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