Indian wheat prices hit an eight-month peak, rising 1.6% to 27,390 rupees ($329) per metric ton, the highest since February. The surge, driven by festive demand and constrained supply, may prompt the government to release more stocks and eliminate import duties. Prices have climbed nearly 22% in the last six months.
As of October 1, government wheat stocks were at 24 million metric tons, well below the five-year average of 37.6 million tons. Domestic prices rise due to limited imports and government procurement falling short of targets. Concerns over the El Niño weather pattern impacting the upcoming wheat crop are also a factor. There is a substantial risk of prices exceeding 30,000 rupees without government intervention.