India wheat prices up in spot market as demand firm.

Prices of wheat rose in key wholesale markets due to improved demand and reports that government may further hike import duty on the grain. The government is likely to further increase import duty on wheat due to hope of a bumper output this year. The govt had, on Nov 8, doubled the import duty on wheat to 20%. Wheat sowing in the country is catching up with the year-ago levels, the acreage was at 24.6 mln ha, as against 25.0 mln ha year ago. A fall in temperatures in north India following rainfall in the last 7-10 days is also expected to boost yield of the crop.