Last Updated : 05 July 2012 at 16:05 IST
Wheat demand up in India, price remains down
Despite rise in demand for wheat based feed from the poultry industry in India on hike in price of maize and soybean based meals, the price of the staple food grain is likely remain under pressure on surplus production for 2011-12.
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NEW DELHI (Commodity Online): Despite rise in demand for wheat based feed from the poultry industry in India on hike in price of maize and soybean based meals, the price of the staple food grain is likely remain under pressure on surplus production for 2011-12.
According to reports, the National Egg Coordination Committee (NECC) has asked the central government to to allocate at least 10 lakh tons of wheat for poultry feed as the price of maize has gone up to Rs 1,400 from Rs 950-1,000 a qtl and soymeal cost rose to Rs 3,750 from Rs 1,800 a qtl, last year.
Indian Poultry Industry is booming which is emerging as the world's 2nd Largest market and is growing at the phenomenal rate of 12 to 15% every year.
Meanwhile, India is expected to produce around 90 million tons of wheat for 2011-12 and the country is estimated to consume around 75 million tons. In addition, on the back of record production of wheat for the past 2-3 years, the warehouses and godwons in India already has huge carry over stocks.
So the prices are likely to remain subdued even though the demand for the commodity exists.
In India's National Commodity and Derivative Exchange (NCDEX), wheat for July delivery traded down 2.68% to Rs 1163 per qtl on 5th July at 14:10 IST.
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