Lucknow, April 29 Wheat prices are up by about 5-10 percent in India's biggest wheat producing state, Uttar Pradesh, following withdrawal of stock limit, traders said. "Wheat prices were between 990-1080 rupees per 100 kg on April 29 in Allahabad, Varanasi, Shahjahanpur, Kanpur and Meerut markets.
The slump in prices of wheat was reversed as stock limit on wheat was withdrawn, which has allowed private players to place bids for supplies orders in bulk, R. P. Aggarwal, a wheat trader from Hardoi market told Reuters.
"The withdrawn stock limit has slightly spiked the price of wheat, but the real impact on prices would be visible after a month's time," stated Rajender Aggarwal, a wheat trader from Lucknow.
Earlier, the Uttar Pradesh government had imposed a stock limit of 1,000 quintals (1 quintal=100 kg) for retailers and bulk purchasers were allowed to stock 5 million quintals of wheat at one go.
The stock limit on wheat was withdrawn on April 27, said V.V.S. Chouhan, president of the Uttar Pradesh Flour Millers Association.
Wheat was sold between 900-980 rupees per 100 kg in most markets of the state, way below the minimum support price (MSP) of 1,100 rupees per 100 kg.
(Reporting by Pramod Bhardwaj; Editing by Prem Udayabhanu)