Wheat prices surge across India: Farmers anticipate strong market trends for 2025

Date:12-25-2024

As wheat harvest season approaches, market dynamics in major wheat-producing states like Madhya Pradesh, Punjab, Haryana, and Uttar Pradesh are generating significant interest. With the latest data from December 2024, wholesale wheat prices have shown notable variations, reflecting a combination of regional, national, and global factors influencing the agricultural market. Farmers across the country are keeping a close watch, hoping for favorable returns in 2025.

In Madhya Pradesh, one of the largest wheat-producing states, prices averaged ₹2826 per quintal in December 2024, showing minimal change from November. However, compared to December 2023, there has been a 12.01% increase, indicating stronger market sentiment. The region’s farmers are optimistic about better rates this year, particularly given the favorable weather conditions that have improved crop quality. Farmers expect prices to cross ₹3000 per quintal for premium varieties, provided market arrivals are managed efficiently.

Similarly, Punjab recorded a steep 28.82% month-on-month increase in prices, reaching ₹2990 per quintal in December 2024, reflecting strong demand. Haryana, on the other hand, experienced a 6.92% decline in prices compared to November, settling at ₹2610 per quintal. Despite this, year-on-year growth of 16% highlights resilience in the state’s wheat market.

Maharashtra stands out with its remarkable 26.59% year-on-year price surge, with December 2024 prices averaging ₹3766 per quintal. This dramatic increase can be attributed to higher transportation costs and a growing demand for premium wheat varieties in southern and western markets.

In Uttar Pradesh, wheat prices reached ₹2772 per quintal, marking a steady 0.51% rise over November 2024 and an 11.5% increase from the previous year. Rajasthan also showed a positive trend, with prices rising to ₹2857 per quintal, up by 12.88% year-on-year.

Interestingly, Odisha recorded an 11.25% month-on-month price increase to ₹2225 per quintal in December 2024. However, compared to December 2023, prices saw a sharp decline of 25.83%, indicating regional variations driven by local supply-demand dynamics.

Across India, the average wholesale price for wheat in December 2024 stood at ₹2855.71 per quintal, reflecting a 3.64% rise over November and marginally surpassing the previous year’s average of ₹2839.87 per quintal.

Expectations for 2025: A Madhya Pradesh Farmer’s Perspective

Farmers in Madhya Pradesh, particularly in the Malwa and Nimar regions, are optimistic about securing better prices in 2025. With favorable weather conditions leading to improved crop quality, many anticipate rates exceeding ₹3000 per quintal, especially for premium wheat varieties. However, they remain cautious, acknowledging that increased arrivals in mandis and potential changes in government procurement policies could impact their earnings. Farmers have also emphasized the need for better mandi management and transportation facilities during the harvest season, which could help reduce costs and improve profitability.

The wheat market’s trajectory in 2025 will largely depend on factors like global demand, government policies, and climatic conditions during the harvest. Farmers across India are hopeful for a strong year, banking on consistent price growth and efficient supply chain management.