Trade bullish on Indian wheat prices on robust procurement, smaller crop.

It is not unusual for domestic wheat prices to start rising once the peak arrival season ends. But what could surprise this year is the scale of the rise in prices, given the government’s robust procurement at a time when production is seen falling. The projected spike in prices has been attributed to a likely smaller domestic crop, restricted imports, and a higher base price for open market sales. Government procurement has been higher this year, with nearly 38% of the total production held by the Centre compared with about 30% a year ago.