Parallel to crude oil, prices of wheat and wheat flour too have seen a steep uptick ever since the war between Russia and Ukraine broke out in late February. Riding on a possible supply disruption of the wheat as the tensions between Russia and Ukraine simmered, export demand for the foodgrain got a fresh push.
Both the countries involved in the war are the major producers of wheat. The fresh export queries have led the grain's prices to hit a record high in India. In Madhya Pradesh's Indore, which is considered as one of the benchmark markets for the foodgrain, its price rose up to Rs 2,400-2,500 per 100 kg, against Rs 2,000-2,1000 until the war broke out.
Same is the case in the US. Futures prices of wheat rose in a range of 40-50 per cent during the initial days of the war. The rising wheat prices in the US also put an additional pressure in the Indian wheat market.
It is important to note that prices of wheat remain on the lower side during this time of the year as freshly harvested rabi crops make their way into the physical markets -- mandis. The current wheat price in India is well above the Centre's assured Minimum Support price, which in itself is a rare phenomenon.
The Minimum Support Price for wheat for 2022-23 marketing season was fixed at Rs 2,015 per 100 kg.