Govt further tightens stock limits on wheat to curb hoarding, check prices
The Centre Friday further tightened stock holding norms for wholesalers, retailers, big chain retailers and processors with immediate effect in order to curb hoarding and to check price rise.
The Centre Friday further tightened stock holding norms for wholesalers, retailers, big chain retailers and processors with immediate effect in order to curb hoarding and to check price rise.
Food Secretary Sanjeev Chopra told mediapersons in Delhi that the stock limit has been reduced to 1,000 tonnes from the existing 2,000 tonnes for traders/wholesalers. The stock limit will be 5 tonnes instead of 10 tonnes on each retailer, 5 tonnes for each depot of a big chain retailer and a total of 1,000 tonnes for all their depots, he said. In case of processors, they can hold 70 per cent of monthly installed capacity multiplied by the remaining months of 2023-24, he added. "This has been done to prevent artificial scarcity and curb hoarding. The revised stock limits will be applicable from immediate effect," Chopra said, adding that the traders will get 30 days' time to reduce the stock to the revised limits.
All wheat stocking entities are required to register on the wheat stock limit portal (https://evegoils.nic.in/wsp/
Initially, the stock limit of 3,000 tonnes was imposed on traders and wholesalers, 10 tonnes on retailers, and 10 tonnes for each outlet of big chain retailers and 3,000 tonnes at all their depots. In the case of processors, 75 per cent of annual installed capacity. Subsequently, the stock limit was further reduced on September 14, to 2,000 tonnes each for traders/wholesalers, and also for big chain retailers at all their depots.
Besides stock limits, the government has taken various steps to ensure domestic availability and check price rise. There is ban on wheat export since May 2022, offloading wheat at subsidised rate to bulk users under the open market sale scheme. Meanwhile, the government is ready to offload an additional 2.5 million tonnes of FCI wheat to bulk consumers during January-March 2024, under the Open Market Sale Scheme (OMSS), in order to boost domestic supply and check price rise.
In May this year, the Food Corporation of India (FCI), the government's nodal agency for procurement and distribution of grains, was given a mandate to sell wheat from the central pool to bulk consumers through an e-auction under OMSS throughout the fiscal except during procurement period in wheat growing states.
According to Chopra, so far 4.46 million tonnes has been offloaded by FCI to processors through weekly e-auctions. "This has increased availability of wheat into the open market at affordable prices, benefitting general consumers across the country," he said. Depending on the requirement, the Secretary said an additional 2.5 million tonnes can be offloaded under OMSS during January-March of 2024.
In a further step to increase supplies in the open market, it has been decided to increase the weekly quantity being offered through e-auction by FCI, from 3 lakh tonnes to 4 lakh tonnes with immediate effect. This will further enhance wheat availability in the open market, he added.
For sale of wheat flour under 'Bharat Atta' brand at a subsidised rate, the Secretary said the quantity has been increased from 2.5 lakh tonnes to 4 lakh tonnes till January-end of 2024. The FCI is issuing wheat to central co-operative organizations like NAFED, NCCF and Kendriya Bhandar for processing into atta and for sale under 'Bharat Atta' brand through their physical/mobile outlets, at an affordable price of Rs 27.50/kg, he said. The allocations to NAFED, NCCF and Kendriya Bhandar are being reviewed periodically to ensure sufficient availability, he said. Areas where prices are reigning higher have been identified, and the agencies are undertaking targeted sales in these areas.
The Secretary said the government is maintaining a close watch over the stock position of wheat to control prices and ensure easy availability in the country. Besides releasing FCI stock in the open market, other measures the government has taken to increase domestic availability and contain price rise include tightening stock limits on wheat traders and banning export since May 2022.
