Govt further cuts stock limit on wheat amid uptick in prices

Amid uptick in prices, the government on Thursday further reduced the stock limit on wheat traders, wholesalers and big chain retailers to 2,000 tonnes from 3,000 tonnes with immediate effect.

"Keeping in view recent uptick in the prices, we have had a review of the stock limits and effective today the stock limit on traders, wholesalers and big chain retailers stand reduced to 2000 tonne," Food Secretary Sanjeev Chopra said while announcing the decision. Three months back, on June 12, the government had imposed a stock limit of 3,000 tonnes on these wheat players till March 2024. The stock limit has been reduced to 2,000 tonnes as the government found there is an "an uptick in the wheat prices on the NCDEX by 4 per cent to Rs 2,550 per quintal in the past one month."

"Although there is adequate availability of wheat in the country, I think there are some elements which are trying to create some artificial scarcity," Chopra told reporters in Delhi. The removal of licensing requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2023, which was issued on 12 June, is applicable till 31 March 2024.

Wheat prices on the NCDEX rose 4% to ₹2,550 per quintal in the last one month. All-India average prices of the grain shot up 1.3% on month on Thursday and 10.4% on year to nearly ₹30 a kg in the retail market. In the wholesale market, all-India average wheat prices were at ₹2,668 per quintal, a rise of 0.2% month-on-month and 4.2% year-on-year.

Chopra said the country has 25.5 million tonne of wheat in the central pool till date against a requirement of 20.2 million tonne. A surplus 3 million tonne wheat is available over and above the buffer stocks for market intervention and another 5.7 million tonne had already been deployed for market intervention.

Commenting on rising commodities prices, Chopra said he does not see a sharp uptick in prices of sugar and edible oil in the coming months during the festival season.