Govt revises wheat stock limits for traders and processors
The Indian government has revised wheat stock limits for traders, wholesalers, and processors to stabilize prices and prevent hoarding. New limits include a reduction for traders and processors, while big chain retailers' depot limits are adjusted. Entities must register and update stocks weekly, with penalties for non-compliance under the Essential Commodities Act
The Government of India has revised wheat stock limits for traders, wholesalers, retailers, big chain retailers, and processors in an effort to stabilize wheat prices. With a robust wheat production of 1129 LMT during the Rabi 2024 season, the move aims to prevent hoarding and control market speculation.
According to the press release issued by the Ministry of Consumer Affairs, Food and Public Distribution, under the new regulations, wheat stock limits for traders/wholesalers have been reduced from 3000 MT to 2000 MT, while big chain retailers can stock 10 MT per outlet, and their depots can hold up to 10 MT multiplied by the total number of outlets. Retailers' limits remain unchanged at 10 MT per outlet. Processors are allowed to store 60 percent of their monthly installed capacity, which was erlier 70 percent.
All wheat stocking entities are required to register on the wheat stock limit portal (https://evegoils.nic.in/wsp/login)and update the stock position on every Friday. Any entity which is found to have not registered on the portal or violates the stock limits will be subject to suitable punitive action under Section 6 & 7 of Essential Commodities Act, 1955.
In case the stocks held by above entities are higher than the above prescribed limit, they shall have to bring the same to the prescribed stock limits within 15 days of issue of the notification. Officials of Central and State Governments will be closely monitoring enforcement of these stock limits to ensure that no artificial scarcity of wheat is created in the country.
