Indian wheat futures rose slightly on Tuesday on tight supplies despite a few traders releasing quantities of stored grain into the market. Soyoil and sugar were also up ahead of Hindu festivals next month, when consumption of sweets, confectionaries and fried food usually increases.
The August wheat contract at the National Commodity and Derivatives Exchange (NCDEX) had risen by a rupee to 854 rupees per 100 kg. The government has contracted imports of 3.5 million tonnes of wheat this year through the state-run State Trading Corp to replenish reserve stocks. Private firms - including users like flour mills and biscuit makers - have also been allowed by the government to import wheat at a concessional duty of five percent.
Soyoil futures were marginally up on demand for next month's festivals. "The prices of edible oil would largely remain firm until next month because of the festival demand," said an Indore-based trader.