Government Tightens Wheat Stock Limits to Curb Price Hikes:

In a move to regulate wheat prices and ensure adequate availability, the Central Government on Thursday imposed stricter stock limits on wheat for wholesalers, retailers, and processors. The government reassured the public that there is ample stock of food grain in the country.

Wheat, a key rabi (winter-sown) crop, is typically harvested from late March onwards.

Revised Stock Limits

Under the new regulations, effective until March 31, 2025, the stock limits have been revised as follows:

Traders/Wholesalers: Maximum stock limit reduced from 1,000 tonnes to 250 tonnes.

Retailers: Allowed to hold only 4 tonnes per retail outlet, down from the previous limit of 5 tonnes.

Big Chain Retailers: Restricted to 4 metric tonnes (MT) per outlet, with an overall cap determined by multiplying 4 MT by the total number of outlets, including depot stocks.

Processors: Permitted to keep 50% of their Monthly Installed Capacity (MIC) multiplied by the remaining months up to April 2025.

Compliance & Enforcement

All entities involved in wheat stocking must register on the designated wheat stock limit portal and update their stock positions every Friday. Failure to comply with registration or exceeding the stock limits will result in punitive action under Sections 6 and 7 of the Essential Commodities Act, 1955.

Any entity holding stock above the prescribed limit must reduce it within 15 days of the notification’s issuance.

Government Monitoring & Intervention

The Department of Food and Public Distribution is actively monitoring wheat stocks to prevent price volatility and ensure a steady supply. The government emphasized its commitment to timely interventions to stabilize market prices for consumers.

During the Rabi 2024 season, total wheat production reached 1,132 lakh tonnes, confirming ample availability nationwide.

Preventing Hoarding & Speculation

To safeguard food security and curb hoarding, the Government of India imposed stock limits on traders, wholesalers, retailers, big chain retailers, and processors across all States and Union Territories. These limits were initially set under the Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024, issued on June 24, 2024. Subsequent revisions were made on September 9, 2024, and December 11, 2024.

These measures aim to curb unscrupulous speculation and ensure fair distribution of wheat throughout the country.