New Delhi: The government on Wednesday reduced the wheat stock limit for traders and wholesalers from 2,000 metric tonnes (MT) to 1,000 MT, with comfortable availability of the staple food item in Rabi 2024. The move is aimed curbing hoarding and stabilizing wheat prices.
The stock limit for retailers has been brought down to 5 MT per outlet, down from 10 MT, the ministry of consumer affairs, food, and public distribution said.
As per the agriculture ministry’s production data, India recorded a total wheat production of 113 million MT in the Rabi season 2024, indicating sufficient supply across the country.
The revised stock limits will remain in force until 31 March 2025 and are applicable to traders, wholesalers, retailers, big chain retailers and processors nationwide. These measures are part of the Centre’s continued efforts to moderate wheat prices and curb speculative practices in the market, the ministry said.
Retail stock limited
Big chain retailers now face a maximum combined stock cap of 5 MT per outlet, including depots. For processors, the permissible limit has been revised to 50% of their monthly installed capacity (MIC), calculated for the remaining months of FY 2024-25, down from the earlier 60%.
As an example, a big chain retailer with 50 outlets can stock a maximum of 5 MT of wheat per outlet, resulting in a total permissible stock of 250 MT across all its outlets and depots combined.
Entities holding stocks exceeding the prescribed limits have been given a 15-day window to adjust their inventories in accordance with the notification.
All wheat-stocking entities must register on the government’s wheat stock limit portal and update their stock positions weekly. Non-compliance or violations will invite punitive action under the Essential Commodities Act, 1955.
“The Department of Food and Public Distribution continues to monitor wheat stock positions closely to ensure adequate availability and maintain price stability. These interventions are aimed at safeguarding consumer interests while addressing concerns over hoarding and supply constraints,” the ministry stated.
As per the consumer affair ministry data, the price of wheat increased from ₹31.02 per kg on 11 December 2023 to ₹32.32 per kg on the same date in 2024, reflecting a rise of 4.19%.
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#Govt #reduces #wheat #stock #limits #traders #retailers #ample #grain