Despite bumper production, central government tightens stock limits on wheat
Under the revised limits, wholesalers are now allowed to maintain wheat stock up to 1,000 tonnes instead of 2,000 tonnes, retailers can hold 5 tonnes for each outlet instead of 10 tonnes and processors can keep stocks up to 50% of their monthly installed capacity, reduced from 60%.
The central government has further tightened the wheat stock limits for wholesalers, retailers, and processors to ensure price stability and prevent hoarding. With a record wheat production of 11.32 crore tonnes in Rabi 2023-24, the Food Ministry said that there is ample availability of wheat in the country.
According to a press release issued by the Ministry of Consumer Affairs, Food & Public Distribution, as part of continuous efforts to moderate prices of wheat, Central Government has decided to revise the wheat stock limit applicable until 31st March 2025. Under the revised limits, wholesalers are now allowed to maintain wheat stock up to 1,000 tonnes instead of 2,000 tonnes, retailers can hold 5 tonnes for each outlet instead of 10 tonnes and processors can keep stocks up to 50% of their monthly installed capacity, reduced from 60%.
The ministry also stated that all entities stocking wheat are required to register on the portal (https://evegoils.nic.in/wsp/login) and update their stock positions every Friday. If the stocks held by entities are higher than the prescribed limit, they should bring the quantity to the prescribed stock limits within 15 days of the issue of the notification.
The government of India imposed stock limits on wheat on 24 June 24, revised on 09 September 2024 and was applicable for all States and Union Territories. The Department of Food and Public Distribution is maintaining a close watch over the stock position of wheat to control prices and ensure easy availability in the country.
The Ministry of Agriculture has estimated a record wheat production of 11.32 crore tonnes in 2023-24. Despite this, wheat prices have reached up to Rs 3,200 per quintal, prompting the government to take measures such as imposing stock limits. In the current Rabi season, the wheat sowing area has increased by 2.28% compared to last year, indicating the potential for higher production in the coming season.
However, the increase in wheat prices, coupled with the government's reduction of stock limits, raises questions about the accuracy of the country's wheat production figures.
