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Aug
21

Paddy Holds Firm While Wheat Struggles to Catch Up

India’s cereal market is showing a relatively quiet picture at the mandi level, but beneath the limited weekly movement, paddy and wheat are heading in different directions. Paddy continues to carry a sizeable premium over last year, while wheat is yet to regain its August 2025 price.

As of August 18, paddy averaged Rs 2,682.58 per quintal in wholesale markets. The week-on-week change was negligible, with prices easing just 0.58%. The monthly picture was equally steady. What stands out is the longer-term gain: paddy is now more than 22% above its price a year earlier and nearly 30% higher than its level two years ago.

This firmness could become important as the market moves towards the next crop cycle. With paddy already trading at a substantially higher level than previous years, the key question will be whether prices can hold these gains once fresh arrivals increase. Strong procurement demand could provide support, while heavier supplies may limit further upside.

Wheat is following a more cautious path. Its average mandi price was Rs 2,581.32 per quintal, marginally lower than the previous week but around 2.4% higher than a month earlier. However, it remains 2.4% below the corresponding price last year.

The difference between the two cereals could shape trading sentiment in the coming weeks. Wheat has shown some recovery recently, but it still needs stronger demand or tighter availability to close the gap with last year’s prices. Paddy, on the other hand, enters the next phase from a relatively stronger base.

For now, the outlook appears stable rather than bullish across the cereal market. Paddy has the stronger price momentum, while wheat may have more room for recovery. Future movement will depend largely on arrivals, procurement activity and the pace of market demand.

The coming weeks should reveal whether paddy can defend its elevated price levels and whether wheat can turn its recent monthly recovery into a broader upward trend.