Wheat prices were at rock bottom levels during the second half of March due to heavy arrivals against weak demand and low offtake. However, from April, various government agencies began procurement of wheat at major producing centres which improved the sentiments of consuming centres also.

The prices of medium average variety of wheat which were quoted at Rs 660- 680 per quintal during the last fortnight of March, are now priced at around Rs 700-725 per quintal.

However, last week saw prices dip for certain varieties. The MP 147 and Sarbati varieties were traded at Rs 725-775 and Rs 900-1,300 per quintal respectively. Lokvan medium variety was quoted at Rs 800-850 per quintal, while super quality was priced at Rs 950-1,000 per quintal.

Wholesale wheat traders at Agriculture Produce Market Committee rule out lowprices of wheat witnessed last month. During March, market sentiments were affected very badly with the fear of bumper crop and anticipation of the huge arrivals.

Foodgrains production is expected to break the 200 million tonne mark this year. Public granaries are already full and have much more stock than required buffer norms. The stock position of wheat and rice was 20.8 million tonnes, on April 1, 1999, against the buffer requirement of 15.8 million tonnes.

Wheat production has increased from 65.9 million tonnes in 1997-98 to a likely 73 million tonnes this year was partly on account of acreage going up marginally from 26.7 million hectares to 27.17 million hectares.

Moreover, compared to last year, when only 30 per cent of the wheat area were timely sown. This year about 70 per cent wheat area were sown well in time.

However, sentiments have improved after government agencies started buying in local markets.

A leading commission agent at APMC market said that at present, government support isfairly good and looking at prevailed situation.

This trend (steady) is likely to continue for sometime.Though government support is good on one hand, on the other hand consumer support is very weak. Traders attributes this to the vacation -- holiday period.Market sources expect that demand will revive in near future as overall consumption of wheat is increasing in the country. In Madhya Pradesh and Uttar Pradesh sale of wheat has increased substantially. Even southern states have also turned to wheat since last one-and-a-half year.