Demand of Wheat Flour has hit a slump in the Indian domestic market. Small and Medium scale Flour Mills are struggling due to moderation in demand of flour. Reports of Biscuit factories struggling to cope with slowdown in Indian economy is not good news for Wheat Millers across India. Biscuit factories are major buyer of wheat flour of wheat millers and news of Parle cutting down 10000 jobs due to high costs is alarming. Stiff competition and increase in Minimum support price of wheat has already affected sales of wheat millers across the country.
Increased procurement of wheat by Food Corporation of India (FCI) hit the wheat millers due to limited wheat supply available for private purchasing. MSP for wheat is set at INR 1840 per quintal and after storage, distribution, mandi fees and other incidental costs the price of wheat comes to INR 2250 per quintal approximately for private millers. FCI too is facing the heat with no definite policy for procurement and storage of food grains. Current Stock of wheat in central pool Food Corporation of India is at 435.88 lakhs Metric Tons.
This is 7% more than previous year stock during the same month. Given the increase in MSP on wheat by Government of India, debt ridden Food Corporation of India will struggle in the coming years. Current Kharif crop harvest will start from October and then FCI will further struggle with storage space in their warehouses. Find the current prices of grains as on 04.09.2019 below:
| Commodity | Mandi | Price (Per Quintal) |
| Wheat Mill Quality Top | NCR | INR 2150 |
| Wheat Mill Quality Normal | NCR | INR 2050 |
| Wheat | Rajasthan | INR 1875 – INR 1945 |
| Wheat Top | Rajasthan | INR 2100 – INR 2250 |
| Wheat | Uttar Pradesh, Uttarakhand | INR 1850 – INR 1950 |
| Wheat | Punjab | INR 1950 – INR 2025 |
| Wheat | Gujarat | INR 1850 |
| Wheat Mill Quality | Gujarat | INR 2100 |
| Wheat Mill Quality (South India) | Chennai, Kerala, Tamil Nadu | INR 2400 – INR 2550 |
| Wheat Sharbati | Madhya Pradesh | INR 2750 – INR 2900 |
| Wheat | Madhya Pradesh | INR 2050 – INR 2100 |
| Wheat | West Bengal | INR 1950 – INR 2050 |
| Wheat MP Sharbati (Retail) | National | INR 3300 |
| Bajra | Gujarat | INR 2260 |
| Jowar White | Gujarat | INR 3300 – INR 3350 |
| Jowar White | Andhra Pradesh | INR 2400 |
| Jowar Red | Rajasthan | INR 2550 |
| Jowar Red | Maharashtra | INR 2200 |
| Jowar Red | Uttar Pradesh | INR 2050 |
| Jowar Red | Tamil Nadu | INR 2075 |
| Jowar Red | Gujarat | INR 1700 |
| Barley | Rajasthan | INR 1890 |
| Maize (Makka) | Gujarat | INR 2250 |
| Maize (Makka) Top Mill Quality | Gujarat | INR 2320 |
| Maize (Makka) Feed Quality | Bihar | INR 2000 |
| Maize (Makka) | Bihar | INR 2200 |
| Maize (Makka) Feed Quality | Punjab | INR 2000 – INR 2080 |
| Maize (Makka) | West Bengal | INR 2300 – INR 2350 |
| Maize (Makka) | Delhi | INR 2200 |
| Maize (Makka) | Maharashtra | INR 2300 – INR 2580 |