Indian wheat prices hit record high on strong demand

MUMBAI, Nov 12 (Reuters): Indian wheat prices have jumped to a record high due to strong demand, limited supplies, and a delay in the government releasing stocks from its warehouses to augment supplies, industry officials said on Tuesday.
The record prices are likely to lift retail inflation that surged to a 14-month high in October, driven by a jump in vegetable prices and dashing hopes of an interest rate cut by the central bank next month.
Supplies are limited in the market, and stockists are unwilling to release wheat at lower prices, said Pramod Kumar, a flour miller.
"If the government begins releasing stocks, supplies will improve, and prices will decrease, as they did last year."
In September, New Delhi lowered the limit on wheat stocks that traders and millers can hold to help boost the grain's availability and moderate prices.
But the curbs failed to bring down prices, which were trading around 30,000 rupees ($355.64) per metric ton in Indore in central state of Madhya Pradesh, up from 24,500 rupees in April and far above the government fixed minimum support price of 22,750 rupees for last season's crop.