With government's wheat procurement operations coming to an end, flour mill owners have stepped up their buying from the market, causing a rise in prices of the commodity.
Wheat prices in Punjab has gone up by Rs 40-45 a quintal in the last two weeks following the government's decision to concluded procurement on June 15.
Prices have touched Rs 895 a quintal because of extra purchases by local flour mills for their own consumption.
While buying is expected to gain momentum in the coming weeks, wheat traders said prices at mandis in Punjab were not likely to cross Rs 910 a quintal. However, prices may go up by Rs 10 more in the next 20-25 days due to continuous buying by flour mills.
However, farmers in Punjab said wheat prices might touch Rs 1,000-1,050 a quintal in the coming months on the back of strong demand for the foodgrain.
The Centre stopped wheat procurement in Punjab and Haryana from June 16 as the season ended in these two major growing states.
The government was paying Rs 850 a quintal that included Rs 100 bonus over and above the minimum support price (MSP) of Rs 750. Procurement with bonus was extended by 15 days after it expired on May 31.
