Wheat price hike There is bad news for the common man regarding the inflation front. The average man will get another inflation shock from next month. While the prices of basic items including LPG cylinders and cooking oil have skyrocketed on the one hand, the prices of flour, bread, biscuits and products made from flour will now soar. In fact, the effect of inflation on wheat prices seems enormous. Wheat prices are constantly rising. Wheat prices are up 46 percent so far this year in 2022. At present, wheat is sold in the market about 20% more than MSP. In such a situation, due to the cost of wheat, the prices of bread, biscuits, flour and flour products will rise.
What is the cause of inflation?
The Food Corporation of India (FCI) regularly sells wheat under the OMS scheme to increase the supply and ensure the abundance of food grains, especially wheat, in the market. Let us tell you that this sale takes place in the season when the arrival of wheat is less. Due to this move in the FCI, wheat supply continues in the market and prices are also kept under control. Seven to eight million tons of wheat per year are purchased from FCI in large quantities. However, the center has not announced an Open Market Sale Scheme (OMSS) for wheat this year, leaving companies concerned about inflation and shortages.
Also Read – Shoe Maker Made Investors Wealthy! Huge profit of ₹ 2.51 lakh on first day of listing
Prices will go up from June
Let us tell you that the impact of prices can be felt from June. This is because there is a possibility of fluffy wheat production in the May batch. The FCI has been offering discounts on wheat for the past few years at the expense of the surplus. Companies have also benefited from shipping subsidies. Last year in 2021-22, the Indian wheat processing industry purchased about 7 million tons of wheat from the government. With no government announcement of OMSS yet, companies may have to buy all their wheat on the open market and companies may pass the cost burden onto consumers.