In a good news to the farmers who are engaged in cultivating wheat crop, this season they might get higher prices for the delivery of crop in the month of November and December. In a recent development yesterday, the government doubled the import duty on wheat to 20% in order to control cheap shipments and to give positive price signal to farmers in the ongoing Rabi season. Following the progress, the wheat prices spiked 2.35% to Rs 1,789 per quintal in futures market on Thursday.
It seems that market participants may have built up fresh positions along with the rising demand in the spot markets led to jump in the futures market. At the National Commodity and Derivatives Exchange (NCDEX), wheat for delivery in the month of December 2017 shot up by Rs 49, or 2.8% to Rs 1,797 per quintal with an open interest of 7,790 lots. The spot price of wheat was at Rs 1,855.1 per quintal. Whereas, the wheat for delivery in the month of November 2017 rose by Rs 51, or 2.98% to Rs 1,763 per quintal with an open interest of 4,530 lots.
Chana price also spikes
Yesterday, the government also imposed import duty of 50% on peas to check cheaper shipments from countries like Canada. The effect of import duty hike was also witnessed in chana prices.
At NCDEX, chana for delivery in the month of January 2018 soared by Rs 186, or 4% to Rs 4,836 per quintal with an open interest of 17490 lots. The spot price of chana stood at Rs 5052.65 per quintal. While, chana for delivery in the month November rose by Rs 196, or 3.99% to Rs 5,114 per quintal with an open interest of 13640 lots, while delivery in December also climbed Rs 190, or 3.99% to Rs 4,947 per quintal in 28420 lots.